Morning Commentary: Preferred stocks drop; Wells Fargo’s 6% preferreds list on NYSE

By Stephanie N. Rotondo

Phoenix, July 24 – Preferred stocks were trading off early Thursday, but given an overall lack of liquidity, traders were not sure what had spurred the slip.

The Wells Fargo Hybrid and Preferred Securities index was down 47 basis points at mid-morning.

“There’s just no volatility,” a trader said, citing “summer doldrums, apathy” as the causes. “Until we get a little more clarity on economic numbers, which may drive rates higher, I just don’t think we’ll see anything.”

As scheduled, Wells Fargo & Co.’s $800 million of 6% series T class A noncumulative perpetual preferreds began trading on the New York Stock Exchange on Thursday.

The ticker symbol is “WFCPT.”

The deal priced July 14, coming upsized from $250 million. On July 17, the San Francisco-based bank exercised a $100 million greenshoe, lifting total issuance from $700 million.

Paper was trader at $24.86 at mid-morning, up from opening levels of $24.85.

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