Bank of America’s recent 6% preferreds continue to lead market; HSBC’s perpetuals flat

By James McCandless

San Antonio, May 22 – Traders reported another slow day in preferred trading, citing the upcoming long holiday weekend.

Bank of America Corp.’s recently issued 6% series GG non-cumulative preferred stock continued to lead in trading volume.

HSBC Holdings plc’s 8.125% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares jumped in activity as its redemption date nears.

Valley National Bancorp’s 5.5% series B fixed-to-floating rate non-cumulative perpetual preferred stock declined as its quarterly dividend is declared.

In the primary market, Ladenburg Thalmann Financial Services Inc. priced $40 million of 7% $25-par 10-year senior notes (Egan-Jones: A-) on Tuesday, according to a news release. The deal includes a $6 million over-allotment option.

Ladenburg Thalmann & Co. Inc. was the bookrunner.

The Miami-based financial services company will apply to list the notes on the New York Stock Exchange under the symbol “LTSF.”

Bank of America up

Bank of America’s $1.2 billion issue of 6% series GG non-cumulative preferred stock continues to lead the preferred market with about 771,000 shares changing hands.

The preferreds, which have traded actively since pricing, were up 1 cent to close at $25.19.

HSBC level

HSBC’s 8.125% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares spiked in trading with about 211,000 shares exchanged.

The company recently announced that the preference shares would be one of two securities that would be redeemed on June 4.

The securities were level at $25.23.

Valley National down

Valley National’s 5.5% series B fixed-to-floating rate non-cumulative perpetual preferred stock fell as the company declared its quarterly dividend of about 3 cents.

The dividend will be payable on July 2.

The preferreds, with about 197,000 shares changing hands, fell 9 cents to close at $25.58.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day up 0.04%, rebounding from the 0.01% loss seen earlier in the session.

The iShares US Preferred Stock ETF closed up 1 cent to $36.95.

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