Preferreds come off day’s lows, still finish weak; Qwest action boosted as notes list

By Stephanie N. Rotondo

Phoenix, Sept. 22 – Uncertainty over the global and domestic economies appeared to be putting pressure on the markets Tuesday, including the preferred stock market.

However, preferred stocks – as well as the broader markets – did manage to pare at least some losses by the end of the day.

The Wells Fargo Hybrid and Preferred Securities index ended down 2 basis points, after being down as much as 7 bps at mid-morning. In the common stock market, the Dow Jones industrial average finished off 1.09%, though it was down 1.42% earlier in the session. Domestic crude oil prices also dropped and then recovered a bit, ending down 1.47%.

“We’re still trying to make heads or tails of anything,” a trader said. “A lot of our stuff just isn’t moving today.”

As for the preferred space, Qwest Corp.’s $400 million of 6.625% $25-par senior notes due 2055 began trading on the New York Stock Exchange.

The ticker symbol is “CTZ.” The deal priced Sept. 10.

A trader quoted the notes at $24.81 bid, $24.83 offered. The paper was seen ending at $24.83.

Qwest’s surge in activity pushed Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative preferreds (NYSE: WFCPV) out of the dominant spot and into second place. About 823,000 shares traded on the day, and the paper ended unchanged at $25.08.

That issue priced Sept. 8.

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