Recently priced preferred deals eyed, though liquidity thin; Fannie, Freddie remain active

By Stephanie N. Rotondo

Seattle, Aug. 25 – Preferred stock investors were turning toward recently priced deals in Thursday trading, though trading overall remained muted, a trader said.

Qwest Corp.’s 6.5% $25-par senior notes due 2056 (NYSE: CTBB) were on the busier side, ticking up a penny in early trades to $25.61. However, the issue finished the day off a penny at $25.59.

The $850 million issue priced Aug. 11. A $127.5 million greenshoe was fully exercised on Monday, bringing the total amount outstanding to $977.5 million.

Meanwhile, Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due 2056 (NYSE: LMHB) were initially off a penny to $24.99. Like Qwest, it reversed direction by the close, ending a penny higher at $25.01.

That deal came Aug. 3.

In the most recent Entergy deals, Entergy Louisiana LLC’s $270 million of 4.875% $25-par collateral trust mortgage bonds due 2066 (NYSE: ELC) were pushing up, rising 3 cents to $24.85 in mid-morning trading.

The issue priced Aug. 10.

Entergy Arkansas Inc.’s $410 million of 4.875% $25-par first mortgage bonds due 2066 (NYSE: EAI) were also 3 cents better, closing at $24.91.

The bonds hit the market on Aug. 9.

A couple of Fannie Mae and Freddie Mac issues continued to be more active than not on Thursday, with the busier securities looking to regain ground.

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