Bank of America leads rebounding market; Deutsche Bank preferreds decline amid layoffs

By James McCandless

San Antonio, May 29 – The preferred market started the short week with average volume, market sources confirmed.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock started the week back on top of preferred volume.

Deutsche Bank AG’s 6.55% trust preferred securities slid as the company talks laying off thousands of employees.

Ally Financial Inc.’s preferreds gained as financial names stay atop of the preferred market.

Bank of America up

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock started the week back on top of the preferred market with about 1 million of the preferred shares changing hands in secondary trading.

The preferreds (NYSE: BACPrB) were up 4 cents to close at $25.38.

Deutsche Bank down

Deutsche Bank’s 6.55% trust preferred securities jumped up in trading on Tuesday with about 411,000 shares changing hands, exceeding its normal volume by more than 8 times.

Recently, the company announced that it would be laying off more than 7,000 people in a cost-cutting measure.

“They have a lot of credit and institutional problems, and that was a major factor in the fall today,” a trader said.”

The securities (NYSE: DXB) fell 28 cents to close at $25.00.

Ally Financial gains

Ally Financial’s 8.125% fixed-to-floating rate trust preferred securities traded up with about 374,000 shares traded.

The securities have been among a group of financial names that have received increased attention as Bank of America and others issue redemption notices for certain issues.

The Ally 8.125% preferreds (NYSE: ALLYPrA) gained 8 cents to close at $26.11.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed up 0.03% at the market close on Tuesday after remaining level in early trading.

The iShares US Preferred Stock ETF closed up 6 cents to $37.22.

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