Morning Commentary: Preferreds comes in on Greece worries; Valley National issue nears par

By Stephanie N. Rotondo

Phoenix, June 25 – Preferred stock investors continued to keep an eye toward Greece in early Thursday trading.

As hopes of a debt deal for the struggling nation waned, the preferred market was losing ground.

The Wells Fargo Hybrid and Preferred Securities Index was off 6 basis points at mid-morning.

The early weakness came even despite a new report from the Commerce Department showing that consumer spending had gained nearly 1% in May, the biggest gain since August 2009.

“With the exception of maybe some headline risk from Greece, I think it’s going to be a boring day,” a trader opined.

Though the market was generally soft, Valley National Bancorp’s $115 million of 6.25% series A fixed-to-floating rate noncumulative perpetual preferred stock was moving up closer to par, a trader said.

He quoted the issue at $24.90 bid, par offered.

The deal priced on June 16.

From the current week’s business, Wintrust Financial Corp.’s $125 million of 6.25% series D fixed-to-floating rate noncumulative preferreds continued to lag, as a trader pegged the shares at $24.65 bid, $24.72 offered.

That deal came Monday at $25.00.

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