Wells Fargo slips; Bank of America preferreds continue rise; Deutsche Bank declines

By James McCandless

San Antonio, July 3 – Trading in the preferred market was steady in the abbreviated session Tuesday ahead of the full market close for the Fourth of July holiday.

Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred stock led a short day in secondary trading to edge lower.

Bank of America Corp.’s $1.2 billion issue of 6% series GG non-cumulative preferred stock rose again.

Deutsche Bank AG’s 8.05% trust preferred securities saw more attention, declining slightly.

Wells Fargo dips

Wells Fargo’s 8% series J non-cumulative perpetual class A preferred stock fell again to wrap up the short day in trading.

Last week, the bank passed the most recent series of Federal Reserve stress tests and raised its dividend for its common stock.

The preferreds (NYSE: WFCPrJ) were down 1 cent to close at $25.64 with about 230,000 shares trading.

On Monday, the preferreds were down 5 cents.

Bank of America improves

Bank of America’s 6% series GG non-cumulative preferred stock saw more activity.

The preferreds (NYSE: BACPrB) were up 16 cents to close at $26.30 on volume of 228,000 shares.

On Monday, the preferreds were up 2 cents.

On Friday, the company announced that it will redeem its $494,382,000 of series K fixed-to-floating rate non-cumulative preferred stock on July 30.

Deutsche Bank slips

Deutsche Bank’s 8.05% trust preferred securities were down against an overall rising market. Last week, reports confirmed that the company’s U.S. arm has failed the Federal Reserve’s most recent stress test, citing “widespread and critical deficiencies across the firm’s capital-planning practices.”

Last year, the Federal Reserve designated the bank’s American operations to be in “troubled condition,” but the condition was not made public until recently.

The preferreds (NYSE: DKT) were down 4 cents to close at $25.30 with about 220,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.30% at market close, more than doubling the 0.14% increase seen in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 31 cents to $37.83.

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