Morning Commentary: M&T Bank to tap market; Annaly Capital down; Deutsche Bank higher

By James McCandless

San Antonio, July 23 – The Tuesday session in the preferred market began on an upward trend with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.07%.

The primary space saw M&T Bank Corp. planning to price a $400 million offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock with an initial dividend in the 4% area.

Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC are the joint bookrunners.

The preferreds are redeemable on any dividend payment date beginning in August 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed for five years, then resets to a rate of Treasuries plus a spread.

In early secondary trading, real estate investment trust Annaly Capital Management, Inc.’s 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock was sinking.

The preferreds (NYSE: NLYPrI) were down by 10 cents to $25.39 on volume of about 90,000 shares.

Meanwhile, in finance, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities and Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities were modestly gaining.

The 8.05% preferreds (NYSE: DKT) were up 1 cent to $25.30 with about 75,000 shares trading.

The 6.55% preferreds (NYSE: DXB) were up 7 cents to $24.26 with about 39,000 shares trading.

Sector peer JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferreds were also trending upward.

The preferreds (NYSE: JPMPrD) were higher by 1 cent to $27.40 on volume of about 36,000 shares.

In communications, Qwest Corp.’s 6.5% notes due 2056 were relatively active but level as the session opened.

The notes (NYSE: CTBB) were flat at $24.14 with about 55,000 notes trading.

Real estate developer Brookfield Property Partners LP’s 6.5% series 1 class A cumulative redeemable perpetual preferred units were trailing early Tuesday.

The preferreds (Nasdaq: BPYPP) were down 2 cents to $25.46 on volume of about 23,000 shares.

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