Argo Group preferreds below par; National General jumps; Qwest $25-par notes slip

By James McCandless

San Antonio, July 8 – Volume leaders in the preferred space ended Wednesday with mixed results while the overall market finished with a net gain.

On its first day in the secondary, Argo Group International Holdings, Ltd. new $150 million 7% series A resettable fixed-rate preference shares closed under par.

Sector peer National General Holdings Corp.’s 7.5% series C non-cumulative preferred stock jumped higher.

Meanwhile, communications name Qwest Corp.’s 6.875% notes due 2054 slipped to lower levels by the end of the session.

In the finance space, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities tracked higher.

Elsewhere, utilities provider Just Energy Group, Inc.’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were under pressure.

Argo under par

On its first day in the secondary market, insurance carrier Argo Group’s new $150 million 7% series A resettable fixed-rate preference shares closed under par.

The preferreds, trading under the temporary symbol “ARGHF,” closed at $24.65 on volume of about 1.3 million shares.

The deal priced on Tuesday.

Sector peer National General’s 7.5% series C non-cumulative preferred stock jumped higher by the end of the afternoon.

The preferreds (Nasdaq: NGHCN) improved by $1.70 to close at $25.66 with about 569,000 shares trading.

Qwest lower

Meanwhile, communications name Qwest’s 6.875% notes due 2054 slipped to lower levels as the session concluded.

The notes (NYSE: CTV) shaved off 3 cents to close at $25.14 on volume of about 514,000 shares.

Ally higher

In the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities tracked higher.

The preferreds (NYSE: ALLYPrA) garnered 65 cents to close at $23.64 with about 227,000 shares trading.

Just Energy dips

Elsewhere, utilities provider Just Energy’s 8.5% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were under pressure.

The preferreds (NYSE: JEPrA) shaved off 71 cents to close at $3.17 on volume of about 224,000 shares.

Early Wednesday, the company announced that it would remain as an independent entity after concluding a strategic review.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day up by 0.15%, pushing past the 0.04% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was up 12 cents to $34.80.

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