Allstate preferred shares close above par; U.S. Bancorp gains; Energy Transfer rises

By James McCandless

San Antonio, Aug. 2 – After a week of volatility, the preferred market closed the week higher after receiving a boost on Friday afternoon.

Far and away the leader in the secondary, Allstate Corp.’s new $1.15 billion 5.1% series H fixed-rate non-cumulative perpetual preferred stock closed above par.

Meanwhile, in finance, U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferreds were seen gaining.

Sector peer Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities declined as the session ended.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units trended upward.

Elsewhere, closed-end fund Highland Income Fund’s new 5.375% series A cumulative preferred shares shot upward.

Allstate above par

Far outpacing the rest of the secondary market, insurance provider Allstate’s new $1.15 billion 5.1% series H fixed-rate non-cumulative perpetual preferred stock closed above par.

The preferreds, trading under the temporary symbol “ALLZL,” were spotted closing at $25.25 on volume of about 11 million shares.

The deal priced on Thursday.

U.S. Bancorp gains

Meanwhile, in the finance space, U.S. Bancorp’s series B floating rate non-cumulative perpetual preferreds were seen gaining throughout the day.

The preferreds (NYSE: USBPrH) rose 11 cents to close at $20.91 with about 308,000 shares trading.

Sector peer Citigroup’s 7.875% fixed-to-floating rate trust preferred securities declined by the end of the session.

The preferreds (NYSE: CPrN) gave up 9 cents to close at $27.14 on volume of about 234,000 shares.

Energy Transfer up

In oil and gas, Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were trending upward.

The preferreds (NYSE: ETPPrE) added on 2 cents to close at $24.81 with about 247,000 shares trading.

Highland rises

Elsewhere, closed-end fund Highland Income Fund’s new 5.375% series A cumulative preferred shares shot higher.

The preferreds, trading under the temporary symbol “HFROP,” garnered 17 cents to close at $25.07 on volume of about 231,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week better by 0.27%, improving on the 0.02% loss from early Friday activity.

The iShares US Preferred Stock ETF was up 4 cents to $37.25.

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