Morning Commentary: Aegon preps $25-par offering; Energy Transfer rises; Capital One up

By James McCandless

San Antonio, Oct. 15 – The preferred market started Tuesday higher with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.04%.

In the primary market, Aegon Funding Co. LLC plans to price an offering of $25-par subordinated notes due 2049.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the joint bookrunners.

The notes are redeemable after five years. Prior to that, the notes are redeemable after a tax event, capital disqualification event or a rating methodology event.

Leading in secondary trading, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were on the rise early.

The preferreds (NYSE: ETPPrE) were up 11 cents to $25.67 on volume of about 164,000 shares.

Meanwhile, in the finance space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock opened higher.

The preferreds (NYSE: COFPrI) were gaining 2 cents to $25.06 with about 100,000 shares trading.

Sector peer Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities saw a negative trend.

The preferreds (NYSE: DKT) were sinking 12 cents to $25.70 on volume of about 67,000 shares.

In utilities, Spire Inc.’s 5.9% series A cumulative redeemable perpetual preferreds were under pressure as the day began.

The preferreds (NYSE: SRPrA) were losing 15 cents to $27.22 with about 96,000 shares trading.

Real estate investment trust AGNC Investment Corp.’s 6.875% series D fixed-to-floating rate cumulative redeemable preferreds were seen improving.

The preferreds (Nasdaq: AGNCM) were rising 4 cents to $25.22 on volume of about 81,000 shares.

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