Morning Commentary: Bank of America’s new issue leads preferreds; HSBC mixed in early trading

By James McCandless

San Antonio, May 10 – Bank of America Corp.’s new $1.2 billion issue of 6% series GG non-cumulative preferred stock traded actively on Thursday but remained flat in early trading.

The preferreds were level at $25.02 with about 224,000 shares trading.

BofA Merrill Lynch was the bookrunner for the preferreds, which priced on Monday.

The notes are callable after five years.

Separately, HSBC Holdings plc’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares were leading the market in volume with about 52,000 and 250,000 shares trading, respectively.

The company announced last Friday that the preference shares would be redeemed on June 4.

The 8.125% shares were level at $25.22 in early trading.

The 8% shares were down 1 cent at $25.40.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.07% in early trading, rebounding from a 0.08% loss at the market close on Wednesday.

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