Morning Commentary: Preferreds climbing higher; Wells Fargo preferreds could list ‘any day’

By Stephanie N. Rotondo

Phoenix, July 22 – Preferred stocks were ticking high early Tuesday as “consumer prices were in line,” a trader said.

Still, there was “no sign of any new deals,” he said. “It’s just really quiet out there.”

The Wells Fargo Hybrid and Preferred Securities index was up 7 basis points at mid-morning.

Wells Fargo & Co.’s $800 million of 6% series T class A noncumulative perpetual preferreds – a deal that came July 14 – should hit the New York Stock Exchange “any day,” according to a trader.

The preferreds have been trading under a temporary symbol, “WLRGP.”

Since pricing – and coming upsized from $250 million – the issue has yet to reach and hold at levels of par or over. Early in the Tuesday’s session, the preferreds were trading at $24.83, which compared to opening level of $24.87.

Last week, the bank said it had exercised its $100 million greenshoe, bringing total issuance up from $700 million.

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