Midday Commentary: Primary takes a breather; JPMorgan's new issue frees up, FirstMerit to follow

By Stephanie N. Rotondo

Phoenix, Jan. 30 - The primary preferred stock market was taking a bit of a break at midweek, as no new issues had been announced as of midday.

"Maybe we're done for the week," a trader said. "But maybe not."

He added that he had not heard any rumors of potential deals coming for the rest of the week or the next week.

J.P. Morgan Chase & Co.'s new $850 million issue of 5.45% series P noncumulative perpetual preferreds freed from the syndicate in early trading. The deal priced on Tuesday, coming upsized from $500 million.

A trader saw the issue at $24.70 bid at midafternoon.

"It's probably a manager, but I'm not positive," he said.

Meanwhile, Arbor Realty Trust Inc.'s $35 million of 8.25% series A cumulative redeemable preferreds - another deal that priced Tuesday - was quoted at $24.70 bid, $24.85 offered.

However, a trader remarked that he had not seen any markets for Saul Centers Inc.'s $125 million of 6.875% series C cumulative redeemable preferreds. That issue came late Tuesday.

In other recent deals, FirstMerit Corp.'s $200 million of 5.875% series A noncumulative perpetual preferreds was set to free up at 12:30 p.m. ET.

The paper - which priced Monday - was "hanging around" $24.60, according to a trader.

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