Morning Commentary: New Southern California Edison, Compass issues tick higher with market

By Colin Hanner

Chicago, June 21 – Preferred stocks were trending higher on Tuesday morning but volume was lackluster, a market source said.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was up 15 bps.

In the new issue space, Southern California Edison Co.’s SCE Trust VI’s upsized $475 million offering of 5% series L trust preference shares, which freed to trade Tuesday after coming to market on Monday, were quoted at $25.05, up 6 cents since Tuesday’s close, a market source said.

More than 185,000 shares had traded as of mid-morning.

Compass Diversified Holdings LLC’s debut preferred issue, $100 million of 7.25% series A preferreds, was quoted at $24.70 after freeing to trade on Tuesday. The preferreds closed Tuesday at $24.67.

In the secondary space, Maiden Holdings Ltd.’s $150 million of 6.7% series D noncumulative preference shares (NYSE: MHPrD), in their third day on the New York Stock Exchange, were up 3 cents, or 0.12%, to $25.30.

Toward the top of volume leaders, HSBC Holdings plc’s 8% exchangeable perpetual subordinated securities (NYSE: HSEB) were up 2 cents, or 0.07%, to $26.78. More than 138,000 shares traded as of mid-morning.

Morgan Stanley’s 6.875% series F fixed-to-floating noncumulative preferreds (NYSE: MSPrF) were up 3 cents, or 0.10%, to $29.65.

Countrywide Capital V’s 7% capital securities (NYSE: CFCPrB) were up 2 cents, or 0.09%, to $25.69.

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