MetLife’s new preferreds lead market upward; Bank of America’s preferreds strengthen

By James McCandless

San Antonio, June 4 – Trading volume in the preferred market was moderate, led again by MetLife, Inc.’s recent issue.

MetLife’s $700 million of 5.625% series E non-cumulative preferred stock began the week at the top of preferred trading.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock remained active in secondary trading and were higher on the day.

HSBC Holdings plc’s 8% preference shares gained as the securities were called for redemption Monday.

MetLife leads

MetLife’s upsized $700 million of 5.625% series E non-cumulative preferred stock started the week leading trading with about 2,884,000 shares trading.

Talk for the deal was originally at $200 million with a dividend of between 5.625% and 5.75%.

The deal priced Wednesday.

The stock, with a temporary ticker of MTLLP, was up 17 cents to $25.80.

Bank of America up

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock continued to generate interest in the secondary market with about 1,716,000 shares exchanged.

The preferreds (NYSE: BACPrB) were up 9 cents to close at $25.62.

HSBC redemption eyed

HSBC’s 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares jumped up with about 308,000 shares trading.

The preferred issue was one of two securities that the company was scheduled to redeem on Monday.

The preference shares (NYSE: HSEB) were up 1 cent at $25.43.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed up 0.05% at the market close, reversing a 0.06% drop in early trading on Monday.

The iShares US Preferred Stock ETF was up 13 cents to close at $37.32.

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