Preferred stocks climb higher; bank earnings to start next week; Ally paper rises

By Stephanie N. Rotondo

Seattle, Jan. 5 – The preferred stock market continued to gain ground in the second trading day of the New Year.

“Everything is green for the most part,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index ended up 18 basis points. Liquidity, however, remained thin, though it looked to be picking up a touch.

“There’s no new issues on the horizon yet,” the trader said, adding that the hope was more volatility would seep into the market by next week.

Next week will bring with it the beginning of bank earnings season, which could in fact increase market activity. JPMorgan Chase & Co., for instance, is slated to release its fourth-quarter and full-year 2015 results on Jan. 14.

In Tuesday trading, the New York-based bank’s 6.15% series BB noncumulative preferreds (NYSE: JPMPH) were on the active side, though they held steady at $26.10.

Ally Financial Inc.’s preferreds were moving up Tuesday following news out Monday regarding a fight between the company and one activist investor group.

The 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPA) gained a nickel to close at $25.46. The 8.5% series A fixed-to-floating rate perpetual preferreds (NYSE: ALLYPB) were also up a nickel, trading at $25.83.

Ally has faced its share of struggles. In the last year alone, its stock has crumbled by 20%.

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