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

By James McCandless

San Antonio, May 15 – Traders reported an active day in the preferred market amid a broad decline.

Bank of America Corp.’s new 6% series GG non-cumulative preferred stock led the market for the second day this week.

Oaktree Capital Group, LLC’s new series A perpetual non-cumulative preferred units were down again

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were heavily traded.

Bank of America’s $1.2 billion issue of 6% series GG non-cumulative preferred stock traded down on Tuesday to lead the market with about 2,412,000 shares exchanged.

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

The preferreds lost 10 cents to close at $25.05 on Tuesday.

Meanwhile, Oaktree’s new $180 million series A perpetual non-cumulative preferred units fell again with about 2,413,000 shares changing hands.

The new deal, which came to market on Thursday, has a dividend of 6.625%.

The units lost 1 cent to close at $24.57.

And Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities saw 444,000 shares trade on Tuesday.

The securities traded up 1 cent to close at $25.78.

The Wells Fargo Hybrid & Preferred Securities Financial index closed down 0.35%, and the iShares US Preferred Stock ETF lost 18 cents to close at $36.91

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.