Bank of America preferreds add to recent gains; Synovus rises; Wells Fargo declines

By James McCandless

San Antonio, July 2 – The preferred market saw robust trading as the Fourth of July holiday nears, with the market trending upward.

Bank of America Corp.’s $1.2 billion issue of 6% series GG non-cumulative preferred stock gained, leading secondary trading to start the week.

Synovus Financial Corp.’s recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual stock saw increased attention.

Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred stock saw more activity.

Bank of America up

Bank of America’s 6% series GG non-cumulative preferred stock led the secondary market at the beginning of the week.

The series GG preferreds (NYSE: BACPrB) were up 2 cents to close at $26.14 with about 899,000 shares trading. On Friday, the preferreds rose 14 cents.

On Friday, the company announced that it will redeem its $494,382,000 of series K fixed-to-floating rate non-cumulative preferred stock on July 30.

Synovus rises

Synovus’ recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock saw increased attention.

The series D preferreds (NYSE: SNVPrD) were up 8 cents to close at $25.72 on volume of about 450,000 shares.

On Monday, the company announced plans to pay about $130 million to redeem its outstanding series C fixed-to-floating rate non-cumulative perpetual preferred stock.

Wells Fargo declines

Wells Fargo’s 8% series J non-cumulative perpetual class A preferred stock declined at the start of the week.

The preferreds (NYSE: WFCPrJ) were down 5 cents to $25.65 with about 395,000 shares trading.

Last week, the bank passed the most recent series of Federal Reserve stress tests and raised its dividend for common stock.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.46% at the market close.

The iShares US Preferred Stock ETF was up 20 cents to $37.91.

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