Midday Commentary: Preferreds ticking higher as week nears end; Allstate’s new issue frees up

By Stephanie N. Rotondo

Phoenix, June 6 – Preferred stocks continued to erase losses incurred earlier in the week, as the Wells Fargo Hybrid and Preferred Securities Index put on 30 basis points as of early Friday trading.

“We’ve had a little bit of a bounce back in the secondary, but nothing crazy,” a trader said.

As for recent deals, Allstate Corp.’s $250 million of 6.25% series F fixed rate noncumulative perpetual preferred stock – an offering done via Incapital LLC’s Leopards program – was trading “right around par” as of mid-morning, according to the trader.

The issue freed to trade early in the day.

The new issue came Thursday, though pricing was originally slated for June 9. But talk was that the deal went well and so the books were closed ahead of schedule.

Meanwhile, Resource Capital Corp.’s $110 million of 8.625% series C fixed-to-floating rate cumulative redeemable preferreds were quoted at $24.90 bid, $24.95 offered.

“They’re hanging right around that area,” a trader said.

That deal priced Tuesday.

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