Fifth Third taps $1,000-par market; AT&T preferreds improve; Invesco jumps higher

By James McCandless

San Antonio, July 27 – Continuing last week’s trend, the preferred market ended Monday with more gains.

In primary activity, Fifth Third Bancorp priced a $350 million offering of $1,000-par series L fixed-rate reset non-cumulative perpetual preferred stock at par with a dividend of 4.5%.

Making a mark at the top of the secondary again, AT&T, Inc.’s 4.75% series C perpetual preferred stock, and its 5% series A cumulative perpetual preferreds improved.

Elsewhere, REIT Invesco Mortgage Capital Inc.’s 7.5% series C fixed-to-floating rate cumulative redeemable preferred stock jumped higher.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock declined.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock followed the trend.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities also finished on the positive side.

Fifth Third prices

In Monday primary activity, Fifth Third priced a $350 million offering of $1,000-par series L fixed-rate reset non-cumulative perpetual preferred stock (Baa3/BB+/BB+) at par with a dividend of 4.5%.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Fifth Third Securities, Inc. and RBC Capital Markets, LLC are the bookrunners.

On Sept. 30, 2025 and every five years thereafter, the dividend resets to Treasuries plus 421.5 basis points.

The preferreds are redeemable on or after Sept. 30, 2025 at par. Prior to that, the preferreds are redeemable after a regulatory capital event at par.

AT&T improves

Making a mark at the top of the secondary space for a second straight trading day, telecom services provider AT&T’s 4.75% series C perpetual preferred stock, and its 5% series A cumulative perpetual preferreds improved.

The series C preferreds (NYSE: TPrC) were up 24 cents to close at $24.90 on volume of about 549,000 shares.

On Friday, the preferreds moved up 4 cents.

The series A preferreds (NYSE: TPrA) shifted up 11 cents to close at $25.98 on volume of about 164,000 shares.

Invesco higher

Elsewhere, real estate investment trust Invesco Mortgage’s .5% series C fixed-to-floating rate cumulative redeemable preferred stock jumped higher.

The preferreds (NYSE: IVRPrC) shot up $1.50 to close at $22.00 with about 263,000 shares trading.

Wells Fargo down

Meanwhile, in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock declined by the end of the afternoon.

The preferreds (NYSE: WFCPrZ) shaved off 3 cents to close at $23.97 on volume of about 234,000 shares.

Sector peer Synchrony Financial’s 5.625% series A non-cumulative perpetual preferred stock followed Monday’s trend.

The preferreds (NYSE: SYFPrA) gained 23 cents to close at $24.15 with about 210,000 shares trading.

Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities also finished the day on the positive side.

The preferreds (NYSE: ALLYPrA) tacked on 5 cents to close at $23.90 on volume of about 156,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session up by 0.10%, weaker than the 0.22% rise from early Monday trading.

The iShares US Preferred Stock ETF was up 9 cents to $35.80.

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