Morning Commentary: Voya Financial to tap market; Athene preferreds dip; NuStar rises

By James McCandless

San Antonio, June 11 – Activity in the primary preferred space picked up on Tuesday as the secondary marketed traded higher early in the session.

The Wells Fargo Hybrid & Preferred Securities Financial index was up by 0.11%.

In the primary market, Voya Financial, Inc. said it plans to price an offering of $25-par series B fixed-rate reset non-cumulative preferred stock at par.

Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are the joint bookrunners.

The dividend resets after the first call date and every five years thereafter.

The preferreds are redeemable within 90 days of a ratings agency event at $25.50, within 90 days of a regulatory capital event or on the first call date or any subsequent reset date at par.

In the secondary, Athene Holding Ltd.’s new 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares saw an early dip.

The preferreds, trading under the temporary symbol “ATHDF,” were down 13 cents to $25.97 on volume of about 63,000 shares.

Oil and gas name NuStar Energy LP’s 7.625% series B fixed-to-floating rate cumulative redeemable perpetual preferred units were on the rise.

The preferreds (NYSE: NSPrB) started up 5 cents to $21.10 with about 33,000 shares trading.

Meanwhile, in the finance space, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were also better at the session’s open.

The preferreds (NYSE: DKT) were higher by 7 cents to $25.70 on volume of about 29,000 shares.

Insurance provider Brighthouse Financial, Inc.’s 6.6% series A non-cumulative perpetual preferred stock started out slightly positive.

The preferreds (Nasdaq: BHFAP) were up 1 cent to $26.75 with about 25,000 shares trading.

Elsewhere, communications name Qwest Corp.’s 6.5% notes due 2056 were trailing at the beginning of the day.

The notes (NYSE: CTBB) were lower by 3 cents to $22.85 on volume of about 22,000 notes.

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