Morning Commentary: Preferreds open with firm tone; Qwest preparing to list; Wells Fargo active

By Stephanie N. Rotondo

Phoenix, Sept. 21 – Preferred stocks were starting out strongly as the week began.

The Wells Fargo Hybrid and Preferred Securities index was up 14 basis points at mid-morning. By comparison, the Dow Jones industrial average was up nearly 1% in early trading.

The gains came after a surge in volatility the previous week, due in large part to the Federal Reserve’s decision not to increase short-term interest rates.

But while the preferred stock market was strong, a trader said the space remained quiet.

“I assume we are going to see some [new] deals here, but I haven’t heard anything yet,” he noted.

As for recent deals, Qwest Corp.’s $400 million of 6.625% $25-par senior notes due 2055 – an issue priced Sept. 10 – was given a symbol, a trader said.

The symbol is “CTZ.” However, the trader said the notes had not yet listed on the New York Stock Exchange.

He quoted the issue at $24.75 bid, $24.80 offered.

Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative preferreds (NYSE: WFCPV) meantime remained in focus and better. The paper was up a nickel at mid-morning, trading at $25.12.

That deal came Sept. 8.

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