Bank of America preferreds lead market upward; AT&T heads lower after CEO comments

By James McCandless

San Antonio, May 30 – The preferred market saw average volume on the second day of a short week in trading.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock continued the short week on top of preferred trading.

AT&T, Inc.’s 5.35% global notes due 2066 tumbled after its CEO made comments on the difficulty that Sprint Corp. and T-Mobile US, Inc. may have in attempting to merge.

Validus Holdings, Ltd.’s 5.8% series B non-cumulative preference shares gained amid reports that the European Commission has approved its takeover by American International Group, Inc.

Bank of America gains

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock was the most-active preferred issue on Wednesday with about 718,000 shares exchanged.

The preferreds (NYSE: BACPrB) were up 5 cents to close at $25.43.

AT&T down

AT&T’s 5.35% global notes due 2066 were back in the spotlight on Wednesday with about 629,000 shares traded.

Chief executive officer Randall Stephenson made comments about the difficulty faced by Sprint and T-Mobile as the two companies attempt to merge as the government intervenes, characterizing the attempt as “a tough hill to climb.”

AT&T is awaiting judgment on whether or not it will be allowed to merge with Time Warner, having been embroiled in a lawsuit with the Department of Justice over whether or not the merger would harm consumers.

The $25-par notes (NYSE: TBB) lost 25 cents to close at $25.03.

Validus up

Validus Holdings’ 5.8% series B non-cumulative preference shares saw a spike in activity on Wednesday with about 390,000 shares trading, outpacing its average volume of about 37,000.

Reports confirmed that the European Commission has approved Validus’ takeover by American International Group.

Validus is a Bermuda-based insurance company.

The preference shares (NYSE: VRPrB) were up 6 cents to close at $25.23.

Indexes rise

The Wells Fargo Hybrid & Preferred Securities Financial index closed up 0.16% at market close, widening from the 0.12% gain in early trading on Wednesday.

The iShares US Preferred Stock ETF closed up 3 cents to $37.25.

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