Morning Commentary: Aspen Insurance on tap; Allstate gains; Qwest $25-par notes lower

By James McCandless

San Antonio, Aug. 6 – The preferred space started Tuesday positive with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.13%.

In primary activity, Aspen Insurance Holdings Ltd. plans to price an offering of perpetual non-cumulative preferred shares.

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

The preferreds are redeemable on or after Oct. 1, 2024. Prior to that, they are redeemable after a capital disqualification event, tax event or ratings agency event at par. They are also redeemable if the company submits a proposal to preferred holders for a vote at $26.00.

Meanwhile, in the secondary, Allstate Corp.’s new 5.1% series H fixed-rate non-cumulative perpetual preferred stock saw early gains.

The preferreds, trading under the temporary symbol “ALLZL,” were up 2 cents to $25.19 on volume of about 196,000 shares.

Sector peer Maiden Holdings, Ltd.’s 7.125% series C non-cumulative preference shares were pushing higher.

The preferreds (NYSE: MHPrC) were gaining 62 cents to $4.85 with about 53,000 shares trading.

Elsewhere, in communications, Qwest Corp.’s 6.5% notes due 2056 were under water as the session started.

The notes (NYSE: CTBB) were losing 7 cents to $24.01 on volume of about 74,000 notes.

Utilities name Southern Co.’s 5.25% series 2016A junior subordinated notes due 2076 were also trailing.

The notes (NYSE: SOJB) were declining by 11 cents to $25.92 with about 43,000 notes trading.

In the finance space, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were down Tuesday morning.

The preferreds (NYSE: DKT) were off by 2 cents to $25.26 on volume of about 37,000 shares.

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