JPMorgan preferreds edge higher; DCP Midstream lower; Medical Transcription weakens

By James McCandless

San Antonio, Oct. 11 – The preferred market saw the primary space buzzing as the secondary largely followed the equity market sell-off.

Leading the secondary was JPMorgan Chase & Co.’s recent issue of 5.75% series DD non-cumulative preferred stock, which ended slightly higher.

Elsewhere in the financial space, Wells Fargo & Co.’s 5.5% series X non-cumulative perpetual class A preferred stock dropped as U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock gained.

DCP Midstream, LP’s 7.875% series B fixed-to-floating rate cumulative redeemable perpetual preferred units fell.

In the health care space, Medical Transcription Billing Corp.’s 11% series A cumulative redeemable perpetual preferred stock dropped more than 2 points after the company announced an additional $15 million offering of the preferreds.

Insurance provider Enstar Group Ltd.’s 7% series D non-cumulative fixed-to-floating rate perpetual preferred shares traded down.

JPMorgan ends higher

At the top of the secondary, JPMorgan’s recent issue of 5.75% series DD non-cumulative preferred stock ended higher amid a day of negative trends.

The preferreds (NYSE: JPMPrD) were up 1 cent to close at $24.90 on volume of about 821,000 shares.

On Wednesday, the preferreds lost 11 cents.

Elsewhere in the financial sector, Wells Fargo’s 5.5% series X non-cumulative perpetual class A preferred stock traded lower.

The preferreds (NYSE: WFCPrX) were down 21 cents to close at $24.02 with about 342,000 shares trading.

U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock also ended higher in the banking sector.

The preferreds (NYSE: USBPrP) were up 5 cents to close at $24.17 on volume of about 331,000 shares.

On Wednesday, the preferreds lost 16 cents.

DCP Midstream lower

Meanwhile, DCP Midstream’s 7.875% series B fixed-to-floating rate cumulative redeemable perpetual preferred units declined, shifting focus away from the company’s recent series C preferreds.

The series B preferreds (DCPPrB) were down 2 cents to close at $24.52 with about 598,000 shares trading.

Medical Transcription slips

In the health care space, Medical Transcription’s 11% series A cumulative redeemable perpetual preferred stock lost about 8% of its value during the session. The company announced Thursday morning that it would be making an at-the-market offering for $15 million more of the preferreds.

The preferreds (Nasdaq: MTBCP) were down $2.19 to close at $25.61 on volume of about 312,000 shares.

Enstar negative

Insurance provider Enstar’s 7% series D non-cumulative fixed-to-floating rate perpetual preferred shares also sustained a negative trend.

The preferreds (Nasdaq: ESGRP) were down 1 cent to close at $25.75 with about 160,000 shares trading.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.42% at market close, erasing a 0.08% gain in early trading on Thursday.

The iShares US Preferred Stock ETF was down 3 cents to $35.91.

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