Preferred market shrugs off lackluster jobs number; Seaspan deal frees; JPMorgan lists

By Stephanie N. Rotondo

Phoenix, Feb. 7 - A preferred stock trader said the market was "taking the economic numbers in stride" on Friday, referring to new jobs numbers that came in below expectations.

The Wells Fargo Hybrid and Preferred Securities index was up 9 basis points as of mid-morning and finished the session 15 bps better.

Seaspan Corp.'s new $125 million issue of 8.25% series E cumulative redeemable preferreds had yet to free to trade early in the session. The deal came late Thursday.

A trader saw the issue offered at $24.70.

"It looked pretty nice as far as price versus existing deals," he said.

After the close, a market source said the issue freed from the syndicate around noon ET. He saw the paper ending the day at $24.79.

As for other recently priced issues, Citigroup Inc.'s $480 million of 6.875% series L noncumulative perpetual preferreds "picked up a bid a bit," the trader said, seeing paper bid for at $24.62.

That deal came Wednesday.

Another source said the issue closed at $24.70.

From the previous week, Verizon Communications Inc.'s $500 million of 5.9% $25-par notes due 2054 were "hovering right around" a $24.85 to $24.95 context, according to a trader.

"Volume on those has slowed down a bit," he noted, adding that the securities had yet to be assigned a temporary reporting symbol on Bloomberg.

The deal priced Jan. 30.

JPMorgan Chase & Co.'s $850 million of 6.7% series T noncumulative perpetual preferreds - a deal that came Jan. 23 - meantime listed on the New York Stock Exchange on Friday. The ticker symbol is "JPMPB."

The issue ended the day up from Thursday's close at $24.89, a gain of 7 cents.

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