Morning Commentary: Citizens Financial above par; JPMorgan mixed again; AmTrust improves

By James McCandless

San Antonio, Jan. 23 – At the start of the Wednesday trading day, the preferred space saw mixed activity as the Wells Fargo Hybrid & Preferred Securities Financial index started higher by 0.02%.

At the top of early trading, Citizens Financial Group, Inc.’s new $300 million series D fixed-to-floating rate non-cumulative perpetual preferred stock was spotted above par on its first day.

The preferreds, trading under the temporary symbol “CFGLL,” were seen at $25.24 on volume of 656,000 shares.

Elsewhere in finance JPMorgan Chase & Co.’s recent 6% series EE non-cumulative preferred stock was active but level so far.

The preferreds, trading under the temporary symbol “JPEEL,” were flat at $25.15 with about 481,000 shares trading.

The company’s more established 5.75% series DD non-cumulative preferreds were on the rise.

The preferreds (NYSE: JPMPrD) had gained 8 cents, trading at $25.10, with about 64,000 shares trading.

Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities went negative in early trading.

The preferreds (NYSE: DKT) were moving down 5 cents to $25.31 on volume of about 42,000 shares.

The company announced early Wednesday that it is still under investigation by the Federal Reserve and European counterparts over its involvement in a money laundering scheme with Danske Bank.

Meanwhile, in the insurance space AmTrust Financial Services, Inc.’s 7.5% subordinated notes due 2055 and its 6.95% series F non-cumulative preferred stock both saw a boost in early trading.

The 7.5% notes (NYSE: AFST) were up $1.16 to $16.36 with about 65,000 notes trading.

The series F preferreds (NYSE: AFSIPrF) were up 1 cent to $8.95 with about 43,000 shares trading.

The company announced last week that it would delist and deregister its preferred structure on Jan. 28, giving the reason that the cost of maintaining the structure outweighs the benefits.

Retail property owner Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferreds saw early gains on Wednesday.

The preferreds (NYSE: PEIPrC) jumped 67 cents to $17.98 on volume of about 38,000 shares.

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