Preferred market remains strong at week’s end; RAIT notes steady; Northern Trust firms

By Stephanie N. Rotondo

Phoenix, Aug. 15 – Preferred stocks were again edging higher on Friday, rounding out a week of gains.

One trader noted that Treasury bonds had also been on the rise.

“They are up a point almost every day, it seems like,” he said.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at day’s end.

RAIT Financial Trust’s $70 million of 7.125% $25-par notes due 2019 continued to hold in a $24.75 to $24.85 range, a trader reported.

The new issue priced Monday and freed to trade on Wednesday. Deutsche Bank Securities Inc., Barclays, Keefe Bruyette & Woods and Credit Suisse Securities (USA) LLC were the joint bookrunners on the non-rated deal.

Meanwhile, Northern Trust Corp.’s $400 million of 5.85% series C noncumulative perpetual preferreds still had not listed on any exchange as of Friday trading, but the paper was attempting to move higher.

One trader said he was seeing a $24.55 bid, $24.68 offer for the paper. Another market source placed the issue at $24.50 at mid-morning, up 7 cents from the previous close, but down from opening levels of $24.64.

The preferreds finished the day at $24.65.

The deal came July 29.

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