Morning Commentary: Preferreds firm in early trading; JPMorgan’s 6.125% preferreds list on NYSE

By Stephanie N. Rotondo

Phoenix, Feb. 23 – The preferred stock market was modestly higher in early trading on Monday, even as the common equity markets were weakening.

The Wells Fargo Hybrid and Preferred Securities index was up 10 basis points at mid-morning.

While the space was inching higher, a trader noted that overall activity was “quiet.”

“It might be a slow week,” he said, adding that he had yet to hear of any new deals.

Among recent deals, JPMorgan Chase & Co.’s $1.38 billion of 6.125% series Y noncumulative preferreds began trading on the New York Stock Exchange.

The deal priced Feb. 5, with $1.2 billion shares sold. A $180 million greenshoe was exercised on Feb. 9.

The preferreds’ ticker symbol is “JPMPF.”

A trader said the paper was trading around $24.98. Another market source quoted the issue at $24.94 bid, $24.96 offered.

The preferreds were issued as depositary shares representing a 1/400th interest.

J.P. Morgan Securities LLC was the bookrunner. Joint lead managers were BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used for general corporate purposes.

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