Bank of America’s new 6% preferreds lead mixed market; Oaktree’s new deal declines

By James McCandless

San Antonio, May 14 – The preferred market started the week with heavy activity, traders reported, with mixed results.

Bank of America Corp.’s new 6% series GG non-cumulative preferred stock closed the beginning of the week at the top of the market.

Oaktree Capital Group, LLC’s new series A perpetual non-cumulative preferred units were down in high volume.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities added to the day’s volume as financial names dominate the preferred market. The securities traded up 2 cents to close at $25.77.

Bank of America’s new $1.2 billion issue of 6% series GG non-cumulative preferred stock began the week at the top of the preferred market again with 2.47 million shares trading hands.

The deal came to market last week and has consistently ruled in volume with millions of shares trading per day.

The preferreds gained 11 cents to close at $25.15.

Meanwhile, Oaktree’s new $180 million series A perpetual non-cumulative preferred units closed down on Monday with about 977,000 units exchanged.

The new deal, which came to market last Thursday, comes with a dividend of 6.625%.

The units will be callable after five years.

The units lost 7 cents to close at $24.58.

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