Morning Commentary: HSBC active as preferred market opens lower; Bank of America declines

By James McCandless

San Antonio, May 8 – HSBC Holdings plc’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares were down as the company announced last Friday that the preference shares would be redeemed on June 4, 2018.

The 8.125% preference shares were down 3 cents to $25.41 with about 269,000 shares trading hands.

The 8% preference shares were down 5 cents to $25.22 with about 104,000 shares traded.

Bank of America Corp.’s 6% series EE non-cumulative preferred stock was in demand Tuesday morning after the company priced $1.2 billion of 6% non-cumulative preferred stock, series GG, at par of $25.00 after market close on Monday.

BofA Merrill Lynch was the bookrunner.

The notes will be callable after five years.

The series EE preferred stock, with about 80,000 shares trading, was down 15 cents to $25.27.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.13% in early trading, adding on to the 0.18% loss at market close on Monday.

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