Citigroup preferreds decline; JPMorgan gains, announces redemption; U.S. Bancorp rises

By James McCandless

San Antonio, Sept. 27 – Toward the end of the week in preferred trading, the market remained fixed on financial names.

Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities moved lower.

JPMorgan Chase & Co.’s recent $1,696,250,000 issue of $25-par 5.75% series DD non-cumulative preferred stock rose as the company issued a redemption notice for another series of preferreds.

U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock improved for the second day in a row.

Citigroup dips

Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities fell again, leading secondary trading.

The preferreds (NYSE: CPrN) were down 3 cents to close at $26.82 on volume of about 1.1 million shares.

On Wednesday, the preferreds lost 3 cents.

JPMorgan rises

Meanwhile, JPMorgan’s recent issue of 5.75% series DD non-cumulative preferreds saw another day of gains.

On Thursday, the company announced that it will redeem $1.7 billion, or 169,625 of its 600,000 outstanding shares of its series I fixed-to-floating rate non-cumulative perpetual preferred stock. The redemption price will be the liquidation preference of $10,000 per share.

The series I preferreds are not listed on any securities exchange.

The series DD preferreds, trading under the temporary symbol “JPMLL,” were up 3 cents to close at $25.22 with about 744,000 shares trading.

On Wednesday, the series DD preferreds picked up 11 cents.

U.S. Bancorp gains

In other financial sector trading, U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock improved.

The preferreds (NYSE: USBPrP) were up 14 cents to close at $25.10 on volume of about 422,000 shares.

On Wednesday, the preferreds rose 13 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.08% at market close, improving slightly on the 0.06% gain in early trading on Thursday.

The iShares US Preferred Stock ETF was up 4 cents to $37.06.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.