Bank of America’s 6% preferreds lead market higher; Barclays, Citigroup active

By James McCandless

San Antonio, May 23 – Traders reported another slow day in preferred trading, citing the upcoming long holiday weekend.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock traded actively in the secondary market, continuing a recent pattern.

Barclays plc’s 8.125% series 5 non-cumulative callable dollar preference shares saw increased trading volume amid merger rumors.

Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferred securities were active, fueled by continued investor interest the financial sector.

Unum Group and Ladenburg Thalmann Financial Services, Inc.’s new issues were seen trading under par.

Bank of America rises

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock led secondary trading on Wednesday with about 869,000 shares exchanged.

The deal came to market a few weeks ago and has regularly taken the top spot in preferred volume.

In Wednesday trading, the preferreds were up 7 cents to close at $25.26.

Barclays edges lower

Barclays’ 8.125% series 5 non-cumulative callable dollar preference shares saw upsized volume with about 178,000 shares trading amid reports that the company is exploring a merger with Standard Chartered plc.

The shares were down 1 cent to close at $26.42.

Citigroup gains

Citigroup’s 7.875% fixed-to-floating rate trust preferred securities saw about 124,000 shares changing hands.

The securities were up 5 cents to close at $26.79.

New issues below par

Unum’s new $300 million 6.25% junior subordinated notes due 2058 were trading up, a market source said, as it tries to make its way back to par.

The deal came to market on Monday.

The notes were up 10 cents to close at $24.70.

Ladenburg’s new $40 million 7% 10-year senior notes were also below par, the source said.

The $25-par notes came to market on Tuesday.

The source confirmed that the new notes were seen at $24.50.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended trading up 0.11% after a 0.01% decline in early trading.

The iShares US Preferred Stock ETF closed up 8 cents to $37.03.

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