HSBC’s preferreds close the week down; Bank of America’s new 6% preferreds add to gains

By James McCandless

San Antonio, May 11 – The preferred market finished the week with high activity, traders reported, driven primarily by financial names.

HSBC Holdings plc’s preferreds ended the week down after the company issued redemption notices for two of the issuer’s securities last week.

Bank of America Corp.’s new 6% series GG non-cumulative preferred stock remained a favorite after hitting the market earlier this week.

And the Goldman Sachs Group, Inc. saw increased volume in its series J preferred stock as financial names lead the preferred market.

HSBC preference shares lower

HSBC’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares closed the week down. The company announced last Friday that both issues would be redeemed on June 4.

The 8.125% shares lost 2 cents to close at $25.21 with about 1,339,000 shares changing hands.

The 8% shares lost 2 cents to close at $25.38 with about 2,428,000 shares exchanged.

Bank of America gains

Bank of America’s new $1.2 billion issue of 6% series GG non-cumulative preferred stock ended the week at the top of the market with about 1,663,000 shares trading hands.

The preferreds gained 1 cent to close at $25.04 on Friday.

Goldman Sachs down

Goldman Sachs’ 5.5% series J fixed-to-floating rate perpetual non-cumulative preferred stock traded actively on Friday with about 614,000 shares exchanged but still ended lower on the day.

On Thursday, the company announced that it would be partnering with Apple, Inc. to offer a credit card branded with Apple Pay, Apple’s digital wallet platform.

The preferreds lost 5 cents to close at $25.71.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index shot up 0.51% to close the week after falling 0.14% in early Friday trading.

The iShares US Preferred Stock ETF rose 3 cents to close at $37.06.

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