Midday Commentary: Investors await CHS deal; BRE, Deutsche Bank, Wells Fargo preferreds up

By Christine Van Dusen

Atlanta, Feb. 18 - Preferred stock market-watchers were keeping an eye on CHS Inc. on Tuesday as nasty weather and post-holiday malaise kept trading volumes low.

"We're getting hit with snow again," a Chicago-based trader said. "We just got through some yesterday. And we're coming off a holiday, so there's a little lag here."

Last week CHS, a Minnesota-based agricultural company, announced plans to offer up to $250 million series 2, class B cumulative redeemable preferreds.

BofA Merrill Lynch and Wells Fargo Securities LLC are leading the new deal.

"We're waiting to see when CHS brings the deal," a trader said on Tuesday. "Nobody seems to know much about it, so we're in wait-and-see on that."

On Tuesday, the company's existing 7.875% series 1, class B cumulative redeemable preferreds (Nasdaq: CHSCO) were trading at $27.71, down 51 cents.

"I would love to see some new deals," the trader said.

In other trading on Tuesday morning, BRE Properties Inc.'s 6.75% series D cumulative redeemable preferred stock was quoted at $25.31, up 9 cents on volume totaling 27,892.

Deutsche Bank Contingent Capital Trust II's 7.6% trust preferred securities traded at $26.22, up 9 cents on 25,206 shares traded.

And Wells Fargo & Co.'s 8% non-cumulative perpetual preferred stock, series J, was seen at $28.82, up 5 cents on 22,986 in total volume.

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