Morning Commentary: Allstate slightly lower as broader preferreds slide; Bank of America down

By James McCandless

San Antonio, April 3 – The preferreds market started Tuesday down as newer and news-led issues traded.

Allstate Corp.’s new $500 million issue of $25 par series G fixed-rate noncumulative perpetual preferred stock was spotted by traders trending lower to start the session.

The preferreds were priced last Tuesday with a 5.625% dividend that begins paying out on June 15.

Traders saw the preferreds start 1 cent lower at $25.07.

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

Bank of America Corp.’s preferreds were mixed to start the session.

Last Wednesday the company announced that it would redeem all of its fixed-to-floating rate non-cumulative series M preferred stock and a portion of its fixed-to-floating rate non-cumulative series K preferred stock.

Traders reported seeing the series K preferreds at down 6 cents to $25.60. The series D preferreds traded down 2 cents to $25.45.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.31% in early trading, compounding the losses experienced Monday.

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