Morning Commentary: New SoCal Edison deal strengthens; National General notes assigned symbol

By Stephanie N. Rotondo

Phoenix, Aug. 19 – The preferred stock market was trying to hold its ground in early Wednesday trading, even as equities sold off amid continued China concerns.

The market was also waiting for the release of the minutes from the Federal Reserve’s July meeting.

The Wells Fargo Hybrid and Preferred Securities index was flat at mid-morning.

Among recently priced deals, Southern California Edison Co.’s SCE Trust IV $325 million of 5.375% fixed-to-floating rate trust preference securities – a deal priced Monday – continued to surge upward, with a trader quoting the shares at $25.30 bid, $25.52 offered.

Also from Monday’s business, Capital One Financial Corp.’s $500 million of 6.2% fixed-rate series F noncumulative preferreds were pegged in a $24.94 bid, $24.96 context.

Both issues freed to trade on Tuesday.

From last week, Digital Realty Trust Inc.’s $250 million of 6.35% series I cumulative redeemable perpetual preferreds were being offered at $24.95, according to a trader.

That issue came on Thursday.

And, National General Holdings Corp.’s $100 million of 7.625% $25-par subordinated notes due 2055 were trading at $24.50 bid, $24.55 offered.

The notes priced Aug. 11.

A trader said that deal had finally been assigned a reporting symbol, “NGHCZ.”

“We probably won’t see any more deals this week just until they get these deals cleaned up,” the trader said.

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