Preferreds firm up; recent deals from Associated Banc, JPMorgan improve; Verizon declines

By Stephanie N. Rotondo

Phoenix, June 4 – The preferred stock market was moving upward Thursday, though a trader noted that there continued to be signs of selling pressure.

He pointed to weakness in the equity market and a “run-up in the euro.”

Amid all that, the International Monetary Fund said early in the day that it had downgraded its outlook on the U.S. economy and urged the Federal Reserve to delay any rate hikes until 2016.

The Wells Fargo Hybrid and Preferred Securities index finished 12 basis points higher.

Associated Banc-Corp’s $65 million of 6.125% series C noncumulative perpetual preferreds – a deal priced Monday – closed at $24.65, up a nickel.

The issue is trading under the temporary symbol “ASCTP.”

JPMorgan Chase & Co.’s new 6.1% series AA noncumulative preferreds – a deal from May 28 – were meantime pegged at $24.63 bid, $24.72 offered early in the day.

The preferreds ended 4 cents better at $24.74, with more than 1.6 million of the preferreds being exchanged.

That paper has been assigned a temporary trading symbol of “JPRGP.”

The bank said in a regulatory filing on Thursday that it had partially exercised an over-allotment option on the deal, selling an additional $125 million of the preferreds. That brings the total issuance to $1,425,000,000.

Verizon Communications Inc.’s 5.9% $25-par notes due 2054 (NYSE: VZA) were weakening Thursday as news outlets reported that Dish Network and T-Mobile US were in merger talks.

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