Bank of America’s new preferreds actively traded in secondary market; Ally Financial trades down

By James McCandless

San Antonio, May 10 – Traders reported another day of high activity in the preferred market as Bank of America Corp.’s newest issue remains among the most active.

Bank of America’s new 6% series GG non-cumulative preferred stock remained dominant in volume after coming to market Tuesday.

Ally Financial Inc.’s preferreds fell as financial names remain the most active in the preferred space.

HSBC Holdings plc’s preferreds were mixed after the company issued a redemption notice for two of the securities last Friday.

In its deal, Bank of America’s new $1.2 billion 6% non-cumulative preferreds led the market in volume on Thursday.

With about 1,622,000 shares trading, the preferreds rose 1 cent to close at $25.03.

Meanwhile, Ally Financial’s 8.125% fixed-to-floating rate trust preferred securities traded down on Thursday. The securities are the latest example of financial preferreds trading as Bank of America and others issue redemption notices for certain issues.

With about 458,000 shares exchanged, the securities lost 4 cents to close at $26.20.

And HSBC’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares were mixed on Thursday. The company announced last Friday that both issues would be redeemed on June 4.

The 8.125% shares gained 1 cent to close at $25.23 with about 146,000 shares trading.

The 8% shares lost 1 cent to close at $25.40 with about 432,000 shares trading.

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