Morning Commentary: Brookfield, Byline on tap; JPMorgan, Public Storage trade higher

By James McCandless

San Antonio, June 22 – At the beginning of the new week, the preferred space was seeing broad gains as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.10%.

Kicking off the week’s primary market, Brookfield Infrastructure Partners LP announced plans to price an offering of $25-par series 13 class A preferred limited partnership units.

Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the bookrunners.

The preferreds are redeemable on or after July 31, 2025 at par. Prior to that, the preferreds are redeemable within 60 days after a tax event at par or within 120 days after a ratings event at 102%.

Also, Byline Bancorp, Inc. said that it plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Keefe, Bruyette & Woods, Inc. is the bookrunner.

The coupon is fixed for five years, then converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable after a tax event, a tier 2 capital event or if the company is required to register as an investment company at par.

Leading Monday morning’s secondary activity, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferreds were following the positive trend.

The preferreds (NYSE: JPMPrJ) were up 2 cents to $25.08 on volume of about 89,000 shares.

Elsewhere in the finance space, Bank of America Corp.’s 5% series LL non-cumulative preferred stock was also gaining ground.

The preferreds (NYSE: BACPrN) were picking up 8 cents to $25.25 with about 41,000 shares trading.

Real estate investment trust Public Storage’s 4.625% series L cumulative preferred shares were pushing higher.

The preferreds (NYSE: PSAPrL) were rising 9 cents to $24.99 on volume of about 81,000 shares.

Sector peer American Finance Trust, Inc.’s 7.5% series A cumulative redeemable perpetual preferred stock was also improving.

The preferreds (Nasdaq: AFINP) were gaining 95 cents to $23.22 with about 57,000 shares trading.

Early Monday, the company declared its quarterly dividend for the series A preferreds.

Meanwhile, telecom name AT&T, Inc.’s 4.75% series C perpetual preferred stock was also tracking higher as the session began.

The preferreds (NYSE: TPrC) were adding 14 cents to $23.83 on volume of about 36,000 shares.

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