Midday Commentary: Market begins holiday exodus; Stifel's new issue holds in; SunTrust softens

By Stephanie N. Rotondo

Phoenix, Dec. 19 - The preferred stock market was winding down as the holidays drew nearer on Wednesday.

"I think people are already starting to leave for the holidays," a trader said, lamenting a lack of volume.

Stifel Financial Corp.'s new $150 million offering of 5.375% $25-par senior notes due 2022 were holding in at $24.90 bid, $24.92 offered, the trader said at midday.

The deal came on Tuesday.

Meanwhile, SunTrust Banks Inc.'s $450 million of 5.875% series E noncumulative perpetual preferreds - a deal that priced last week - were coming in a bit, trading around $24.72.

In other recent deals, CoreSite Realty Corp.'s $100 million of 7.25% series A cumulative redeemable preferreds listed on the New York Stock Exchange on Wednesday.

The issue priced Dec. 5.

The symbol is "CORPA."

"I don't think they're doing much," a trader said. The shares were trading at $25.04 at midafternoon, up 6 cents.

A trader also noted that the market could be seeing a turnaround in those banks that were hit the hardest in the financial crisis. Specifically, he noted that Standard & Poor's had upgraded Banco Popular Espanol SA's preferreds following the completion of a tender offer.

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