Morning Commentary: Origin on tap; Duke Energy preferreds active, flat; Allstate lower

By James McCandless

San Antonio, Oct. 7 – While top traders varied, the preferred market opened with gains as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.11%.

Opening up the week’s primary space, Origin Bancorp, Inc. plans to price an offering of $1,000-par fixed-to-floating rate subordinated notes due 2030.

Stephens Inc. is the bookrunner.

After five years, the coupon converts to a floating rate of the three-month SOFR plus a spread.

The notes are redeemable after five years. Prior to that, the notes are redeemable upon a tax event, a tier 2 capital event or if the company is required to register as an investment company.

Leading the session’s early trading volume, utilities provider Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferred stock was active but unchanged so far.

The preferreds (NYSE: DUKPrA) were holding level at $28.06 on volume of about 84,000 shares.

Meanwhile, insurance carrier Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferreds were under pressure.

The preferreds (NYSE: ALLPrH) were shaving off 2 cents to $27.62 with about 57,000 shares trading.

Elsewhere, real estate investment trust Public Storage’s recent 3.875% series N cumulative preferred shares were also improving.

The preferreds, trading under the temporary symbol “PSADL,” were gaining 4 cents to $24.87 on volume of about 56,000 shares.

Sector peer Farmland Partners, Inc.’s 6% series B cumulative participating preferred stock was being pushed lower.

The preferreds (NYSE: FPIPrB) were sliding 17 cents to $24.54 with about 29,000 shares trading.

In the banking and finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was trending positively.

The preferreds (NYSE: WFCPrZ) were tacking on 1 cent to $25.32 on volume of about 31,000 shares.

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