Bank of America preferreds slip, redemptions eyed; KeyCorp declines; Citigroup rises

By James McCandless

San Antonio, July 26 – The preferred market saw a broad decline as new issues continued to see the most volume.

Bank of America Corp.’s new series HH non-cumulative perpetual preferred stock declined as the company issues redemption calls for two series of preferreds.

KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock fell.

Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferred securities improved.

Bank of America’s new $854 million 5.875% series HH non-cumulative perpetual preferred stock declined, leading trading volume in the preferred market.

The preferreds (NYSE: BACPrK) were down 5 cents to close at $25.11 on volume of about 1.2 million shares.

On Thursday, the company called for redemption all of its the outstanding shares of its 6.204% non-cumulative preferred stock, series D, and its 6.375% non-cumulative preferred stock, series 3 (see related story elsewhere in this issue).

Meanwhile, KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock fell with the rest of the market.

The preferreds, trading under the temporary symbol “KYYCP,” were down 9 cents to close at $24.76 with about 1.1 million shares trading.

Separately, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities improved against the day’s negative trend.

The preferreds (NYSE: CPrN) were up 14 cents to close at $26.71 with volume of about 844,000 shares.

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