Preferreds firm as week ends; primary stays quiet; Wells busy, better; Deutsche, Barclays improve

By Stephanie N. Rotondo

Seattle, June 17 – The preferred stock market was looking to finish out the week on a high note on Friday.

The Wells Fargo Hybrid and Preferred Securities Index closed the day 43 basis points better. On Thursday, the index was off 25 bps, erasing nearly all of the 29 bps gained on Wednesday.

But while the space had a firm tone, a trader noted that activity was muted.

“It’s very quiet,” he said. “I think people are probably going to be leaving early.”

The trader also noted that the primary space was radio silent.

“There is no talk of new deals,” he said. “There was a [real estate investment trust] deal that was supposed to come, but it got shelved.

“So maybe we will see that next week,” he speculated.

As for the day’s dealings, Wells Fargo & Co.’s $1 billion of 5.5% series X class A noncumulative perpetual preferreds (NYSE: WFCPX) continued to be actively traded.

The preferreds were up a penny at mid-morning, trading at $25.21. It closed up a nickel at $25.25.

The issue priced on June 8 and listed on Thursday.

European banks were also trending higher, as campaigning on the so-called “Brexit” vote next week was suspended following the assault and death of British lawmaker Jo Cox on Thursday.

Deutsche Bank AG’s 7.6% trust preferred securities (NYSE: DTK) ticked up a penny to $25.31. Barclays Bank plc’s 8.125% series 5 noncumulative callable dollar preference shares (NYSE: BCSPD) were up a similar amount at $25.70.

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