Morning Commentary: Preferreds firm in early trading; Wells Fargo’s new deal set to list on NYSE

By Stephanie N. Rotondo

Phoenix, Sept. 15 – The preferred stock market was looking to gain ground in early Tuesday trading as it continued to trend in line with the broader equity markets.

Still, overall activity remained subdued due to Rosh Hashana and a looming Federal Reserve meeting.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points at mid-morning.

A trader reported that Wells Fargo & Co.’s new $900 million issue of 6% series V class A noncumulative preferreds were going to begin trading on the New York Stock Exchange on Wednesday.

The ticker symbol will be “WFCPV.” The deal came Sept. 8.

In Tuesday trading, the issue was quoted at $24.98 bid, $25.05 offered.

As for AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par subordinated notes due 2055 – a deal priced Wednesday – they were meantime seen around $24.57.

A trader said that issue might also be hitting the NYSE under the ticker symbol “AFST.”

And rounding out last week’s string of new deals, Qwest Corp.’s $400 million of 6.625% $25-par senior notes due 2055 – a deal priced late Thursday – were pegged at $24.60 bid, $24.62 offered.

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