Preferred market erases previous day’s losses; National General assigned temporary symbol

By Stephanie N. Rotondo

Phoenix, March 25 – After ending a touch softer Tuesday, the preferred stock market regained ground in Wednesday trading.

The Wells Fargo Hybrid and Preferred Securities index finished the session up 2 basis points, though it was up 7 bps at mid-morning. Still, the modest gain erased the previous day’s loss.

The upward move came even as the Commerce Department reported that orders for durable goods fell 1.4% in February.

National General Holdings Corp.’s newly priced $150 million issue of 7.5% series B noncumulative preferreds was assigned a temporary reporting symbol early in the midweek session, according to a trader.

The symbol is “NTGKP.” The deal came Tuesday, upsized from $50 million and at the tight end of talk.

Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc. ran the books.

A trader quoted the new preferreds at $24.80 bid, $24.90 offered, and the paper ended the day at $24.81, up 14 cents.

Additionally, the new issue freed to trade at 10:30 a.m. ET.

The issuer is a New York-based insurance company.

As for the coming calendar, a trader said he “heard there might be a [real estate investment trust] deal,” but he had yet to see any details.

A market source had previously opined to Prospect News that new issuance would likely stay subdued – at least from banks – until first-quarter earnings begin to come out in mid-April.

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