Wells Fargo, Citigroup rise ahead of bank earnings; CorEnergy prices add-on at par

By Stephanie N. Rotondo

Seattle, April 12 – Preferred stocks were flat to a touch weaker early Wednesday but managed to finish the session with a slightly firmer feel.

The gyrations came as the market prepared for bank earnings season to kick off on Thursday.

The Wells Fargo Hybrid and Preferred Securities index closed up 8 basis points, though it was down 3 bps at mid-morning. The U.S. iShares Preferred Stock ETF ticked up 1 bp after being flat earlier in the day.

Though there was some strength in the preferred space, liquidity was the lowest it has been all week. Trading volumes have suffered of late but were further pressured this week by the fact that it was a holiday week.

Growing geopolitical concerns surrounding Syria and North Korea were also not helping matters.

Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc. are all slated to announce earnings on Thursday. Ahead of that, the banks’ preferreds were trending higher.

Separately, CorEnergy Infrastructure Trust Inc.’s 7.375% series A cumulative redeemable preferred stock (NYSE: CORRPrA) easily topped trading in the midweek session, with over 2 million of the preferreds trading.

The activity in the name came after the company said it had priced a $70 million add-on at par via a bought-deal private placement.

In the wake of the offering, the preferreds tumbled 56 cents, or 2.21%, to $24.79.

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