Goldman Sachs preferreds fall again; Chimera declines; AT&T’s $25-par notes weaken

By James McCandless

San Antonio, Dec. 21 – The preferred market finished Friday declining again, capping an overall negative week in the space.

Leading the negativity was Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferred stock.

Elsewhere in finance, U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferred stock was also moving downward.

Deutsche Bank Contingent Capital Trust II’s 6.55% Trust Preferred Securities improved.

Real estate investment trust Chimera Investment Corp.’s 8% series B fixed-to-floating rate cumulative redeemable preferreds declined.

In telecom, AT&T, Inc.’s 5.35% global notes due 2066 were losing.

Goldman Sachs falls

In its third straight day leading the volume in the secondary market, Goldman Sachs’ series D floating-rate non-cumulative preferred stock saw another fall.

The preferreds (NYSE: GSPrD) were down 28 cents to close at $16.98 on volume of about 599,000 shares.

On Thursday, the preferreds lost 20 cents.

News broke early Friday that the Malaysian government is seeking $7.5 billion in reparations from the bank for its alleged role in a money-laundering scheme.

Elsewhere in the finance space, U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferreds joined the negative trend.

The preferreds (NYSE: USBPrH) dropped 10 cents to close at $18.60 with about 406,000 shares trading.

Deutsche Bank’s 6.55% Trust Preferred Securities saw a bright spot among the declines.

The preferreds (NYSE: DXB) picked up 13 cents to close at $23.94 on volume of about 349,000 shares.

Chimera off

Meanwhile, real estate investment trust Chimera’s 8% series B fixed-to-floating rate cumulative redeemable preferred stock declined.

The preferreds (NYSE: CIMPrB) lost 9 cents to close at $25.49 with about 403,000 shares trading.

AT&T loses

In the telecom sector, AT&T’s 5.35% global notes due 2066 were also losing in the Friday session.

The notes (NYSE: TBB) dipped 3 cents to close at $22.12 on volume of about 335,000 notes.

On Thursday, the notes also lost 3 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.16% at the Friday close after being down 0.23% in early trading.

The iShares US Preferred Stock ETF was down 14 cents to $33.62.

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