Morning Commentary: ‘Green’ and positive start to the year carries into Wednesday; volume low

By Colin Hanner

Chicago, Jan. 4 – Everything is green in the preferred stock market mid-morning on Wednesday, a trader said, though he added there was no specific news arising from the sector.

“For the most part, things are tending to be strong,” a trader said, adding 401k funds are “jumping” and “rebalancing,” after the start of the New Year.

The Wells Fargo Hybrid and Preferred Securities index was up 39 basis points at mid-morning, and the iShares US Preferred Stock ETF was up 26 points.

The trader also heard potential new, non-rated deals coming to market in the next week, likely the cause of the overall quietness felt in the market right now.

“We’re hearing we may see a couple of non-rated deals – no names yet – but for the most part, not much will happen until after Martin Luther King Jr. Day,” the trader said.

In the secondary market, KeyCorp’s 6.125% series E non-cumulative fixed-to-floating rate perpetual preferred stock (NYSE: KEYPrI) was up 11 cents, or 0.42%, to $26.56.

Capital One Financial Corp.’s 6% series H non-cumulative perpetual preferred stock (NYSE: COFPrH) was down 2 cents, or 0.08%, to $24.92.

And Deutsche Bank Contingent Capital Trust III’s 7.6% trust preferred securities (NYSE: DTK) were up 11 cents, or 0.44%, to $25.25.

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