Farmland Partners rebounds; Bank of America preferreds decline; Synovus falls

By James McCandless

San Antonio, July 12 – The preferred market was flat to weaker in trading on Thursday with volume remaining steady.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.06% at the market close. The iShares US Preferred Stock ETF was level at $37.88.

Farmland Partners Inc.’s 6% series B cumulative participating preferred stock made gains after plummeting on Wednesday.

Bank of America Corp.’s 6% series GG and EE non-cumulative preferred stock declined with the market.

Synovus Financial Corp.’s recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock fell.

AT&T, Inc.’s 5.35% $25-par global notes due 2066 were level ahead of news out after the market close that the Department of Justice planned to appeal a federal judge’s decision allowing AT&T to merge with Time Warner.

Farmland Partners improves

Farmland Partners’ 6% series B cumulative participating preferred stock gained back some of the losses experienced Wednesday after a short seller accused the company of giving high-risk loans to related parties that put the company at risk of insolvency. While the company has denied the allegations, several law firms have announced investigations or class-action lawsuits on behalf of investors.

The preferreds (NYSE: FPIPrB) were up $2.55 to close at $20.70 with about 399,000 shares trading.

On Wednesday, the preferreds lost $6.08.

Bank of America down

Bank of America’s 6% series GG and EE non-cumulative preferred stock declined in trading on Thursday.

The series GG preferreds (NYSE: BACPrB) were down 4 cents to close at $26.37 with about 375,000 shares exchanged.

The series EE preferreds (NYSE: BACPrA) declined 23 cents to close at $26.19 on volume of about 365,000 shares.

On Wednesday, the series GG preferreds were down 11 cents.

Synovus off

Synovus’ recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock also lost some ground.

The preferreds (NYSE: SNVPrD) were off 5 cents to close at $25.95 on volume of about 303,000 shares.

AT&T gets renewed scrutiny

AT&T’s 5.35% $25-par global notes due 2066 were level during the regular trading session and before news emerged that the Department of Justice planned to appeal a federal judge’s decision allowing the company to merge with Time Warner.

The earlier court decision in favor of the AT&T and Time Warner merger followed a lengthy antitrust lawsuit in which the government claimed the move would harm consumer choice.

The preferreds (NYSE: TBB) were level at $25.42 with about 167,000 shares trading.

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