Morning Commentary: Preferreds start week with negative tone; banks trending mostly higher

By Stephanie N. Rotondo

Phoenix, March 9 – With the Friday sell-off in the preferred stock market, a trader said he “wouldn’t be surprised” if there was more selling pressure in the space over the course of the new week.

And while there were no new deals announced as of early Monday, he speculated that “we could see something tomorrow or the next day.”

The Wells Fargo Hybrid and Preferred Securities index was down 5 basis points at mid-morning.

In the banking realm, most names were seeing a rally from Friday’s lows.

Bank of America Corp.’s 6.5% series Y noncumulative preferreds (NYSE: BACPY) were up 6 cents at $25.23 in early trading, while JPMorgan Chase & Co.’s 6.125% series Y noncumulative preferreds (NYSE: JPMPF) were 7 cents higher at $24.98.

Wells Fargo & Co.’s 6% series T class A noncumulative preferreds (NYSE: WFCPT) had improved 15 cents to $25.405.

However, Goldman Sachs Group Inc.’s 5.5% series J fixed-to-floating rate noncumulative preferreds (NYSE: GSPJ) were off 6.3 cents at $24.807.

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