Morning Commentary: Preferreds firm as Scotland stays with U.K.; JPMorgan prices; Gabelli does well

By Stephanie N. Rotondo

Phoenix, Sept. 19 – Preferred stocks were moving higher Friday “now that the Scottish scare is gone,” a trader said.

Scotland held a vote on its independence from England on Thursday. The country rejected the plan, choosing to stay part of the United Kingdom.

The Wells Fargo Hybrid and Preferred Securities Index was up 19 basis points at mid-morning.

JPMorgan Chase & Co. priced $1.6 billion of 6.1% fixed-to-floating rate junior subordinated perpetual notes late Thursday.

In early Friday trading, the new notes were seen at 100.375.

The $1,000-par notes become callable on Oct. 1, 2024. On that date, the notes also begin to float at Libor plus 333 basis points.

JPMorgan Securities LLC ran the books.

Meanwhile, Gabelli Healthcare & WellnessRX Trust’s recently priced $35 million issue of 5.875% series B cumulative perpetual preferreds received a temporary trading symbol on Friday, according to one market source.

The issue came Wednesday. The symbol is “GBQXP.”

Gabelli Healthcare’s new paper was trading around $24.95 early in the session, down from opening levels of $25.02.

BofA Merrill Lynch ran the books.

As for American Financial Group Inc.’s $150 million of 6.25% $25-par subordinated notes due 2054, they were hanging around $24.70 bid, $24.77 offered.

The deal came on Monday, upsized from $100 million and at the tight end of talk. It freed to trade on Wednesday.

The new issue came via BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.