Citigroup preferreds level as company eyes Saudi expansion; AT&T up in mixed market

By James McCandless

San Antonio, May 2 – Traders reported an uptick in activity in the preferred market with news-driven names leading in volume.

Citigroup Inc.’s preferreds led in volume but remained level as the company signaled its interest in returning to conducting business in Saudi Arabia.

AT&T, Inc.’s $25-par bonds rose as the company is expected to wait about six weeks for a decision in its antitrust trial with the Department of Justice.

Dominion Energy, Inc.’s notes fell after the company’s Tuesday announcement that it will build at least eight new natural gas plants over the next 15 years.

Citigroup’s 7.875% fixed-to-floating rate trust preferred securities led the preferred market in volume but remained flat on Wednesday as the company announced its interest in expanding its operations into Saudi Arabia for the first time since 2004.

On Tuesday, traders said that with the recent spate of redemption announcements from Bank of America Corp. and General Electric Co, another is expected from Citigroup.

The securities, with about 307,000 shares trading, were level at $26.24.

Meanwhile, AT&T’s 5.35% global notes due 2066 were up, coming off of Monday’s closing arguments between the Department of Justice and the company to finish its antitrust trial over its attempted merger with Time Warner.

The baby bonds, with about 136,000 notes trading, rose 7 cents to close at $24.95.

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