Preferreds lighten up; Northern Trust expected to list soon; Hovnanian active, improves

By Stephanie N. Rotondo

Phoenix, Aug. 8 – Preferred stocks were holding steady early on Friday but came in a little as the day ended.

A trader speculated that recent news – both economic and geopolitical – indicated that interest rates will be held down for the near term.

The Wells Fargo Hybrid and Preferred Securities index finished the week down 6 basis points.

Northern Trust Corp.’s 5.85% series C noncumulative perpetual preferreds – a deal that priced July 29 – has still not listed, the trader remarked Friday.

“It should be any day,” he said. “I had assumed it would have been by now.”

He saw the $400 million issue trading in a range of $24.35 to $24.50 early in the session. At day’s end, the shares were seen unchanged at $24.39 but down from opening levels of $24.43.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC acted as the underwriters on the deal for the Chicago-based financial holding company.

Though the calendar has been on the light side this week, a trader said that could change next week.

“There may be a new deal on Monday,” he said, though he declined to give specifics.

In the secondary, Hovnanian Enterprises Inc.’s 7.625% series A preferreds (Nasdaq: HOVNP) were surprisingly active, though there was no news to act as a catalyst.

The shares closed at $14.09, up 50 cents, or 3.68%, with over 437,000 shares changing hands.

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