Morning Commentary: Bank of America beats, preferreds firm; recent deals begin trading on NYSE

By Stephanie N. Rotondo

Seattle, Oct. 17 – The new trading week started off with a firm tone due in part to better-than-expected bank earnings.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at mid-morning.

Bank of America Corp. released its first-quarter results on Monday. Following the trend set by Wells Fargo & Co., Citigroup Inc. and J.P. Morgan Chase & Co. on Friday, the numbers beat estimates, as bond and trading revenue rose.

In response, the floating-rate series E noncumulative preferreds (NYSE: BACPE) gained a nickel to $26.41 in early trading. The floating-rate series 5 noncumulative preferreds (NYSE: BMLPL) added 18 cents to $23.54.

Meanwhile, recent deals were hitting the New York Stock Exchange en masse on Monday.

Public Storage’s $350 million of 4.9% series E cumulative preferred shares hit the NYSE under the ticker “PSAPE.”

That paper was trading at $24.69 at mid-morning, which compared to $24.64 at the open.

The deal came Oct. 6.

Also from Oct. 6, Chimera Investment Corp.’s $135 million of 8% series A cumulative redeemable preferred stock listed under the ticker “CIMPA.” From Oct. 5, Bluerock Residential Growth REIT Inc.’s $67.5 million of 7.125% series D cumulative preferred stock began trading under the symbol “BRGPD.”

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