Morning Commentary: Synchrony to tap market; Public Storage under par; Allstate gains

By James McCandless

San Antonio, Nov. 6 – The preferred space saw a weak start on Wednesday with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.02%.

The primary market saw Synchrony Financial announce plans to price a $250 million offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock talked with a dividend of 5.75%.

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

The preferreds are redeemable on or after Nov. 15, 2024 at par.

At the top of the secondary, real estate investment trust Public Storage’s new $225 million 4.7% series J cumulative preferred shares were seen moving under par.

The preferreds, trading under the temporary symbol “PBLSZ,” were spotted at $24.90 on volume of about 254,000 shares.

Meanwhile, insurance provider Allstate Corp.’s new 4.75% series I fixed-rate non-cumulative perpetual preferred stock was gaining slightly.

The preferreds, trading under the temporary symbol “ASTLZ,” were adding 1 cent to $24.90 on volume of about 249,000 shares.

In the finance space, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities started Wednesday weaker.

The preferreds (NYSE: ALLYPrA) were losing 2 cents to $26.41 on volume of about 216,000 shares.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was improving as the session started.

The preferreds (NYSE: COFPrI) were up 6 cents to $25.00 with about 118,000 shares trading.

Elsewhere, asset manager Northern Trust Corp.’s 5.85% series C non-cumulative perpetual preferred stock was moving upward.

The preferreds (Nasdaq: NTRSP) were up 2 cents to $25.31 on volume of about 116,000 shares.

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