Preferreds rise as Morgan Stanley beats; Banc of California eyed; recent deals set to list

By Stephanie N. Rotondo

Seattle, Oct. 19 – Preferred stocks continued to gain momentum on Wednesday as yet another big bank’s earnings beat expectations.

“There are decent bank earnings still, especially on the broker-dealer side,” a market source said.

Morgan Stanley & Co. Inc.’s third-quarter earnings per share came in at 81 cents on revenue of $8.9 billion. Analysts polled by Thomson Reuters had forecast EPS of 63 cents on revenue of $8.17 billion.

The Wells Fargo Hybrid and Preferred Securities index ended up 10 basis points. However, the index was up 33 bps at mid-morning.

Banc of California Inc.’s 7% series E noncumulative perpetual preferreds (NYSE: BANCPE) were meantime also firming in the wake of the Irvine, Calif.-based bank’s results.

The preferreds were up $1.23, or 5.21%, at $24.85.

Meanwhile, a market source told Prospect News on Wednesday that two recent deals – PS Business Parks Inc.’s $165 million of 5.2% series W cumulative preferred shares and Ashford Hospitality Trust Inc.’s $150 million of 7.375% series G cumulative preferred stock – will list on the New York Stock Exchange on Friday.

PS Business, which came Oct. 11, will trade under “PSBPW,” while Ashford, which priced Oct. 13, will list under “AHTPG.”

For its part, PS Business traded up 2 cents to $24.90. Ashford declined 10 cents to $24.80.

© 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.