Preferreds rebound from lows; Associated Banc deal frees; JPMorgan wanes; MetLife active

By Stephanie N. Rotondo

Phoenix, June 2 – The preferred stock market was weak in Tuesday trading but managed to come up from the day’s lows.

“With the long bond off two days in a row, we’ve got a little selling pressure,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index closed down 13 basis points. The index was down 20 bps at mid-morning.

The negative performance of the marketplace came as the Commerce Department said new orders for U.S. factory goods fell in April, suggesting that a strong dollar was weighing on production.

With the softer tone of the market, even recently priced deals were not gaining any traction.

Associated Banc-Corp’s $65 million of 6.125% series C noncumulative perpetual preferreds – a deal priced Monday – were seen at $24.60 in early trading.

A trader said the issue had already freed from the syndicate.

UBS Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners.

Meanwhile, JPMorgan Chase & Co.’s $1.3 billion of 6.1% series AA noncumulative preferreds – a deal from Thursday – were pegged at $24.72, down about a nickel from Monday’s close.

Away from new issues, MetLife Inc.’s 6.5% series B noncumulative preferreds (NYSE: METPB) dominated trading, with more than 1 million shares being exchanged during the trading day.

The preferreds closed 6 cents lower at $25.03.

© 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.