Morning Commentary: Preferreds come in early Tuesday; Wintrust frees to trade; Valley ‘hanging’

By Stephanie N. Rotondo

Phoenix, June 23 – A preferred stock market trader said there was “not a whole lot of movement” in the secondary market early Tuesday.

The Wells Fargo Hybrid and Preferred Securities Index was off 4 basis points at mid-morning.

But as the preferred space was just modestly weaker, the broader markets were gaining ground as investors hoped for a deal in Greece.

In recent deals, Wintrust Financial Corp.’s $125 million of 6.5% series D fixed-to-floating rate noncumulative perpetual preferreds – a deal priced Monday – freed to trade, according to a trader.

He pegged the issue at $24.70.

Incapital LLC and U.S. Bancorp ran the books.

Meanwhile, Valley National Bancorp’s $115 million of 6.25% series A fixed-to-floating rate noncumulative preferreds were “hanging” around “$24.95-ish,” the trader said.

The deal priced June 16 via Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc. and RBC Capital Markets.

Looking ahead, the trader said he had heard “no talk on the horizon” for any other new issues this week.

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