Morning Commentary: Preferred stock investors anticipating CCAR results; banks climbing higher

By Stephanie N. Rotondo

Phoenix, March 11 – The preferred stock market was muted early Wednesday as investors ready themselves for the release of the Federal Reserve’s Comprehensive Capital Analysis and Review of U.S. banks.

Those results will be released at 4:30 p.m. ET.

“After they announce [the results], that could change things,” a trader said, noting that it could spur the primary to start kicking out new deals.

Ahead of the release, bank paper was moving to higher ground.

JPMorgan Chase & Co.’s 6.125% series Y noncumulative preferreds (NYSE: JPMPF) were up 6 cents at $25.04, while Bank of America Corp.’s 6.5% series Y noncumulative preferreds (NYSE: BACPY) had gained 8 cents to trade at $25.27 at mid-morning.

Despite the lack of liquidity, the preferred space overall was continuing to edge upward, and one trader noted that the space had recovered what was lost in a sell-off on Friday.

The Wells Fargo Hybrid and Preferred Securities index was up 17 basis points at mid-morning.

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