Midday Commentary: Upcoming holiday gives preferred market pause; JPMorgan could list Tuesday

By Stephanie N. Rotondo

Phoenix, Aug. 27 - The preferred stock market got off to a muted start Monday as the market was already looking toward the upcoming holiday weekend.

"It's just dead, which means it's only going to get slower this week unless we get a new deal," a trader said. Though the past few weeks have seen a pretty active calendar, he was not so optimistic about the last week of August.

"We might see one [new issue] this week, but I'd be shocked if we see more," he said, also opining that any deal that might come would likely be a smaller issue.

Also, "we might see some selling going into September," he said, given that the month has been a relatively good one for preferreds. The market might also sell off after Germany votes on whether or not to extend aid to Greece, he said.

JPMorgan Chase & Co.'s $1.1 billion of 5.5% series O noncumulative preferreds "could be listing tomorrow possibly," a trader said. He also thought that State Street Corp.'s $500 million of series C preferreds could hit the New York Stock Exchange this week.

State Street priced Aug. 14. JPMorgan came Aug. 20, and settlement was expected Monday.

The trader saw JPMorgan's preferreds at $24.90 bid, $25.02 offered and State Street's securities offered at $24.98.

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