PG&E preferreds tank; Ally Financial, Goldman Sachs gain; AT&T $25-par notes improve

By James McCandless

San Antonio, Jan. 7 – A new week in preferred trading led to positive trends with few outliers.

Leading trading volume at the end of the session was utilities name PG&E Corp.’s 6% first nonredeemable preferred stock.

Elsewhere, in finance, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended with a slight gain.

Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds also saw positive movement.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock was active but level.

In the telecom space, AT&T Inc.’s 5.35% global notes due 2066 improved again.

PG&E tanks

PG&E’s 6% first nonredeemable preferred stock saw a precipitous drop.

The preferreds (NYSE: PCGPrA) ended the session down $1.35 to close at $17.82 on volume of about 569,000 shares.

The market continues to react to news from late Friday that the company is exploring the possibility of filing for bankruptcy within the next month.

The company’s potential liabilities for wildfire damage in California could result in a large accounting charge.

Ally gains

Meanwhile, in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities saw a slight uptick in the Monday session.

The preferreds (NYSE: ALLYPrA) edge up 1 cent to close at $25.64 with about 505,000 shares trading.

On Friday, the preferreds picked up 12 cents.

Elsewhere, Goldman Sachs’ series D floating-rate non-cumulative preferreds were also rising.

The preferreds (NYSE: GSPrD) rose 16 cents to close at $18.26 on volume of about 463,000 shares.

On Friday, the preferreds added 31 cents.

JPMorgan’s 5.75% series DD non-cumulative preferred stock, while active in Monday’s session, ended the day level.

The preferreds (NYSE: JPMPrD) ended flat at $25.09 with about 384,000 shares trading.

On Friday, the preferreds rose 8 cents.

AT&T improves

Telecom name AT&T’s 5.35% global notes due 2066 were improving for another day.

The notes (NYSE: TBB) were up 30 cents to close at $23.29 on volume of about 320,000 notes.

On Friday, the notes gained 21 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.35% at the end of Monday trading, improving on the 0.24% gain at the open.

The iShares US Preferred Stock ETF was up 11 cents to $35.09.

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