Preferreds soften; PNC frees to trade; recent deals at, above par; Deutsche drifts off

By Stephanie N. Rotondo

Seattle, Oct. 28 – It was slow going in Friday trading in the preferred stock market, a trader reported.

“It’s light but slightly down in secondary trading,” he said, “which it should be, with the bond market selling off.”

The Wells Fargo Hybrid and Preferred Securities index waned 34 basis points. The index was down 13 bps at mid-morning.

PNC Financial Services Group Inc.’s $525 million of 5% $1,000-par series S fixed-to-floating rate noncumulative preferreds freed to trade in early dealings, according to a trader.

The deal came Thursday, upsized from $500 million and in line with the revised 5% talk. Initial price talk was 5.125%.

A market source placed the issue at 100.125 at the bell. Earlier in the day, a trader said the paper was “right around par,” in a 99.875 to 100.125 context.

From Tuesday, M&T Bank Corp.’s $500 million of 5.125% $1,000-par series F fixed-to-floating rate noncumulative perpetual preferred stock was “still hovering above par,” a trader said, at 100.5.

Another source saw the issue trade up to 101.

Deutsche Bank AG’s trust preferreds were weaker Friday, though the troubled German bank reported a surprise third-quarter profit on Thursday.

The 8.05% TruPs (NYSE: DKT) fell 26 cents, or 1.04%, to $24.69. The 7.6% TruPs (NYSE: DTK) slipped 11 cents to $24.34.

The company reported a profit of €278 million, which compared to a loss of €6 billion the year before.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.