Preferreds soften; JPMorgan flat; Associated Banc-Corp up; Dynagas, DCP Midstream dip

By Cristal Cody

Tupelo, Miss., Oct. 23 – Preferred stocks closed mostly weaker as equities remained soft amid continued market volatility on Tuesday.

The Wells Fargo Hybrid and Preferred Securities index, which was down 0.39% at the start of the day, ended 0.22% lower. The index closed up 0.09% on Monday.

The U.S. iShares Preferred Stock ETF recovered slightly to close off 0.30%. the iShares was 0.45% lower in early trading after ending Monday 0.8% better.

New issue preferreds were mixed in secondary trading.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock closed unchanged from Monday at $24.83 after trading 3 cents, or 0.12%, weaker at the start of the day. The average trading volume was 2.38 million shares.

The preferred stock (NYSE: JPMPrD) had closed up 33 cents, or 1.35%, on Monday on an average trading volume of 2.41 million shares.

JPMorgan sold $1.7 billion of the $25-par perpetual preferred shares on Sept. 17.

Associated Banc-Corp’s 5.875% series E non-cumulative perpetual preferred stock (Baa3/BB) that priced in September gained 21 cents, or 0.86%, to close at $24.09 on Tuesday. The average trading volume for the shares (NYSE: ASBPrE) was about 164,000 shares.

The bank holding company sold $100 million of the $25-par notes on Sept. 19.

Dynagas, DCP decline

Dynagas LNG Partners LP’s new 8.75% series B fixed-to-floating rate perpetual preferreds recovered slightly from morning trading to close down 2 cents, or 0.8%, to $24.68. The preferreds were off 8 cents, or 0.32%, over the morning. The average trading volume over the day was 271,000 shares.

The preferreds, traded under the temporary symbol “DGAGF,” headed out on Monday up 3 cents, or 0.12%, at $24.70.

Dynagas sold $55 million of the $25-par preferreds on Oct. 16. The issue has an $8.25 million greenshoe.

Meanwhile, DCP Midstream, LP’s $100 million of 7.95% series C fixed-to-floating rate cumulative redeemable perpetual preferred units (B1/B/BB-) that priced earlier this month fell 27 cents, or 1.08%, to $24.55 on the day with an average trading volume of about 84,000 shares.

The preferred units (NYSE: DCPPrC) closed Monday up 4 cents, or 0.19%, to $24.82.

DCP Midstream priced the preferreds on Oct. 2 at par of $25.00.

Primary quiet

Primary action in the preferred stock market remained quiet during the session.

On Monday, Citizens Financial Group, Inc. sold $300 million, or 300,000 shares, of fixed-to-floating rate non-cumulative perpetual preferred stock (BB+/BB-) with a 6.375% dividend.

The Providence, R.I.-based banking and financial services company does not intend to list the preferreds on any exchange.

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