JPMorgan’s new preferreds below par; Chimera gains; Southern Co. $25-par notes rise

By James McCandless

San Antonio, Jan. 17 – The preferred market saw a positive day with activity focused on a new issue.

JPMorgan Chase & Co.’s new $1.85 billion of 6% series EE non-cumulative preferred stock led trading, ending below par.

The bank’s existing 5.75% series DD non-cumulative preferred stock rose in Thursday’s secondary session.

Elsewhere in finance, Goldman Sachs Group Inc.’s 6.375% series K fixed-to-floating rate perpetual non-cumulative preferreds ended better.

Real estate investment trust Chimera Investment Corp.’s recent 8% series D fixed-to-floating rate cumulative redeemable preferred stock saw improvement.

In utilities, Southern Co.’s 6.25% series 2015A junior subordinated notes due 2075 were also on the rise.

JPMorgan mixed

Leading trading volume, JPMorgan’s new $1.85 billion of 6% series EE non-cumulative preferred stock closed the session just under par.

The preferreds, trading under the temporary symbol “JPEEL,” ended the session at $24.99 on volume of about 16 million shares.

The offering was announced Wednesday.

In the secondary space, JPMorgan’s existing 5.75% series DD non-cumulative preferred stock was climbing on Thursday.

The preferreds (NYSE: JPMPrD) were up 12 cents to close at $24.99 with about 460,000 shares trading.

On Wednesday, the preferreds fell 6 cents.

Elsewhere in the finance space, Goldman Sachs’ 6.375% series K fixed-to-floating rate perpetual non-cumulative preferreds also ended the session better.

The preferreds (NYSE: GSPrK) added 2 cents to close at $26.13 on volume of about 220,000 shares.

Chimera higher

Meanwhile, real estate investment trust Chimera’s recent 8% series D fixed-to-floating rate cumulative redeemable preferred stock moved higher.

The preferreds, trading under the temporary symbol “CMIMP,” picked up 5 cents to close at $24.70 with about 472,000 shares trading.

On Wednesday, the preferreds ended their first session below par at $24.65.

The deal priced on Tuesday.

Southern Co. rises

In the utilities sector, Southern Co.’s 6.25% series 2015A junior subordinated notes due 2075 were spotted rising.

The notes (NYSE: SOJA) were up 5 cents to close at $25.63 on volume of about 248,000 notes.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.32% at the end of the Thursday session, extending a 0.11% early gain.

The iShares US Preferred Stock ETF was up 10 cents to $35.43.

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