M&T Bank frees to trade; Schwab slips; People’s deal still firm; Ally declines on earnings

By Stephanie N. Rotondo

Seattle, Oct. 26 – The preferred stock market was losing ground in midweek trading, though a market source noted that the weakness came on light volume.

“The market kind of bounced around in a narrow range,” he said. As for volume, he said it was “lighter than yesterday, but not as bad as it was a week ago.”

The Wells Fargo Hybrid and Preferred Securities index declined 12 basis points.

Among recently priced issues, a trader said M&T Bank Corp.’s $500 million of 5.125% $1,000-par series F fixed-to-floating rate noncumulative preferreds – a deal priced Tuesday – had freed to trade early in the day.

By the bell, the preferreds were seen at 101, which a source deemed up a quarter of a point.

From Monday’s business, Charles Schwab Corp.’s $600 million of 4.625% $1,000-par series E fixed-to-floating rate noncumulative preferreds were pegged at 100.125 at the close.

That compared to levels around 100.5 at Tuesday’s close.

People’s United Financial Inc.’s $250 million offering of 5.625% $25-par series A fixed-to-floating rate noncumulative preferreds were meantime quoted at $26.15 bid, $26.35 offered early in the session. By day’s end, the preferreds were seen at $26.26.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPA) were trading off a little in the wake of the company’s earnings release.

The preferreds ended down 9 cents at $25.50.

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