Morning Commentary: Allstate’s new preferreds active in secondary; Citigroup edges lower

By James McCandless

San Antonio, March 28 – The preferred stock secondary market saw high activity to begin the session early Wednesday.

Citigroup Inc.’s popular preferred N shares traded down Wednesday morning as it redeems all $121.3 million liquidation preference of its 8.4% fixed-rate/floating-rate non-cumulative series E preferred stock.

The securities will be repaid on April 30 at par of $1,000 along with the regular semiannual dividend of $42.00 per $1,000 payable on April 30 (see related story elsewhere in this issue).

The preferred N shares have traded down 2 cents to $27.05 this morning.

Citigroup is a New York-based bank.

Allstate Corp.’s new upsized $500 million issue of $25-par series G fixed-rate noncumulative perpetual preferred stock, which priced on Tuesday, was seen by traders in high activity again on Wednesday.

Traders saw the Allstate preferred hovering around $25.05.

The preferreds come with a dividend of 5.625% that is payable quarterly beginning June 15.

Allstate is a Northbrook, Ill.-based insurance provider.

The Wells Fargo Hybrid & Preferred Securities Financial index fell 0.07% after trending up 0.10% at market close Tuesday.

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