Bank of America’s 6% preferreds among most active; Oaktree’s new deal edges lower

By James McCandless

San Antonio, May 16 – Traders reported another high-volume day as the preferred market saw an overall gain on Wednesday.

Bank of America Corp.’s new 6% series GG non-cumulative preferred stock continued to lead the preferred market in volume.

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 active for a third consecutive day.

Bank of America gains

Bank of America’s new $1.2 billion issue of 6% series GG non-cumulative preferred stock continued to lead in volume on Wednesday with about 1,346,000 shares changing hands.

The deal came to market last week and has consistently remained among the most active preferreds.

The preferreds rose 7 cents to close at $25.12 on Wednesday.

Oaktree’s new deal dips

Oaktree’s new $180 million series A perpetual non-cumulative preferred units fell for a third day with about 895,000 shares trading.

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

The units will be callable after five years.

The units lost 2 cents to close at $24.55.

Ally Financial rises

Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities gained on the day with about 693,000 of the preferreds changing hands.

Traders report that with recent preferred stock redemptions announced from Bank of America and General Electric Co., investors are trying to position themselves in financial names.

The securities rose 4 cents to close at $25.81.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index gained 0.12% at the market close on Wednesday, adding to the 0.02% rise in early trading.

The iShares US Preferred Stock ETF rose 3 cents to close at $36.94.

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