Midday Commentary: Preferreds buck trend, inch higher; recent deals trading 'at new heights'

By Stephanie N. Rotondo

Phoenix, July 9 - A trader said that preferred stocks were "jumping up following the long bond" on Monday.

Stronger-than-expected results from treasury auctions in France and Germany were also helping, he said.

"All of the [recent] new issues are trading up to new heights," he said.

Public Storage's 5.625% series U cumulative preferreds (NYSE: PSAPU), for instance, were up 10 cents to $26.13. The trader noted that the issue was "still the cheapest" of the Public Storage complex, at least in terms of yield.

Entergy Louisiana LLC's 5.25% $25-par first-mortgage bonds due 2052 (NYSE: ELJ) meantime inched up 7 cents to $25.53, while Southern California Edison Co.'s 5.625% trust preference securities (NYSE: SCEPF) issued through SCE Trust I were up 4 cents at $25.76.

The trader remarked that he was "surprised" that no new issues were announced Monday, "especially with the way everything has jumped up here. I'm assuming we'll see some other new issues coming in here."

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