Preferred market erases nearly all of midweek gains; REIT deal delayed; Wells Fargo lists on NYSE

By Stephanie N. Rotondo

Seattle, June 16 – The preferred stock market was again turning weaker on Thursday, after rising in midweek trading.

The Wells Fargo Hybrid and Preferred Securities Index finished the day down 25 basis points. The index had improved 29 bps on Wednesday.

The softer tone of the market was putting the brakes on the new issue stream.

“There was supposed to be a [real estate investment trust] deal today but it got pushed,” a trader said.

Among recent deals, Wells Fargo & Co.’s $1 billion of 5.5% series X class A noncumulative preferreds – an issue priced on June 8 – began trading on the New York Stock Exchange on Thursday.

The ticker is “WFCPX.”

During the session, a trader pegged the preferreds in a $25.19 to $25.20 context. The paper closed at $25.21, up a penny from $25.20 at the open.

The securities fairly dominated trading, with nearly 1.36 million of the preferreds changing hands.

Meanwhile, Seaspan Corp. said the $15 million greenshoe on its $100 million offering of 8.2% series G cumulative redeemable preferreds had been fully exercised, lifting total issuance to $115 million.

The issue came to market on June 9 and is trading under the temporary ticker, “SSPNF.” At the bell, the preferreds were seen up a nickel at $24.89. Earlier in the session, a trader pegged the preferreds at $24.80.

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