Morning Commentary: KeyCorp’s new preferreds trade below par; Bank of America declines

By James McCandless

San Antonio, July 24 – KeyCorp’s new $425 million of 5.65% series F fixed-rate perpetual non-cumulative preferred stock was seen below par on its first day on the market.

The deal priced on Monday.

The preferreds, trading under the temporary symbol “KYYCP,” were spotted trading below par at $24.94 with volume at about 1.6 million shares.

Meanwhile, Bank of America Corp.’s new $854 million 5.875% series HH non-cumulative preferred stock started the session lower.

The preferreds, which priced July 17, were upsized from $250 million and came at the low end of yield talk of 5.875% to 6%.

The preferreds, trading under the temporary symbol “BKAML,” were down 7 cents to $25.00 with about 229,000 shares trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.04% in early trading, turning positive after a 0.27% decline at the market close on Monday.

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