Midday Commentary: Preferreds subdued as week begins; Allstate to offer fixed-to-floating notes

By Stephanie N. Rotondo

Phoenix, Aug. 5 - It was a slow kickoff to the week, a preferred stock trader said Monday.

However, the primary market saw a new $1,000-par note offering from the Allstate Corp. hitting the tape.

The insurance company said it was selling series B fixed-to-floating rate subordinated debentures due 2053. The issue is non-callable for 10 years, except upon the occurrences of a rating agency or tax event.

A trader said he was hearing price talk of 5.875% to 6%, though he had not seen any markets for the paper. That's not unusual, as most $1,000-par issues tend to get locked up in institutional hands early on.

The new notes will not be listed.

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