Preferreds end firm; SoCal Edison, Capital One list on NYSE; JPMorgan preferreds improve

By Stephanie N. Rotondo

Phoenix, Aug. 26 – A preferred stock trader said things were “quieting down” on Wednesday following the last two volatile sessions.

“I think people are waiting to see what happens,” he said, noting that long Treasuries were up and the equity markets were climbing higher.

“There are a lot of $1,000-par issues offered out there,” the trader added.

The Wells Fargo Hybrid and Preferred Securities index finished the session up 21 basis points.

The index was off 3 bps at mid-morning. However, the index was already paring its losses at that point, as it had been down 7 bps earlier in the session.

For its part, the Dow Jones industrial average gained more than 600 points on the day.

As expected, Southern California Edison Co.’s SCE Trust IV’s $325 million of 5.375% fixed-to-floating rate trust preference securities and Capital One Financial Corp.’s $500 million of 6.2% series F noncumulative perpetual preferred stock both began trading on the New York Stock Exchange on Wednesday.

The Southern California Edison symbol is “SCEPJ.” The Capital One ticker is “COFPF.”

Both deals priced Aug. 17.

A trader quoted the Southern California Edison preferreds at $25.05 bid, $25.10 offered early in the day and the preferreds ended at the right side. The paper opened at $25.15.

Capital One was meantime pegged at $24.60 bid, $24.69 offered at mid-morning but retreated to $24.45.

That compared to opening levels of $24.70.

JPMorgan on the move

Away from those recent deals, JPMorgan Chase & Co.’s preferreds were on the active side, though there was no credit-specific catalyst to cause the activity.

The 6.15% series BB noncumulative preferreds (NYSE: JPMPH) – a $1.1 billion issue that priced July 22 – ended up 3 cents at $24.77. The 6.125% series Y noncumulative preferreds (NYSE: JPMPF) were also higher, rising 7 cents to $24.91.

The 6.1% series AA noncumulative preferreds (NYSE: JPMPG), however, ended unchanged at $24.73.

That issue came May 29, with $1.425 billion shares being sold, including the over-allotment option.

JPMorgan is a New York-based bank.

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