Morning Commentary: Citigroup preferreds open lower on mixed market; Barclays preference shares off

By James McCandless

San Antonio, May 4 – Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferred securities were active and lower in early trading on Friday with about 247,000 shares exchanged, already outpacing its average volume.

The company announced on Wednesday that it is seeking a return to operations in Saudi Arabia.

The recent series of redemption announcements from Bank of America Corp. and General Electric Co. has some traders thinking that Citigroup is next.

The securities were down 31 cents at $26.24 Friday morning.

Barclays plc’s 8.125% series 5 non-cumulative callable dollar preference shares led a slow market with about 70,000 shares trading hands early Friday.

The company recently announced that CEO Jes Staley would remain in his post after British regulators conducted a review of Staley’s actions in trying to uncover the identity of a whistleblower. Staley would be fined no more than $2 million.

The company has also experienced turmoil in trying to find a new chairman of its board of directors as it faces pressure from an activist investor to open another seat and increase profitability in its investment bank division.

The shares were down 3 cents to $26.10 Friday morning.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.20% in early trading, reversing Thursday’s 0.12% loss.

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