Brexit woes pressure preferred stocks; European banks remain weak; Wells Fargo rebounds

By Stephanie N. Rotondo

Seattle, June 27 – The preferred stock market continued to feel pressure on Monday following Friday’s sell-off on the United Kingdom’s surprise vote to leave the European Union.

The Wells Fargo Hybrid and Preferred Securities index closed off 53 basis points. The index was down 67 bpd at mid-morning. It closed down 53 bps on Friday, though that was much better than the lows of the day.

Trading in European banks also remained in vogue, as investors pushed the paper lower.

Barclays Bank plc’s 8.125% series 5 noncumulative callable dollar preference shares (NYSE: BCSPD) were down 58 cents, or 2.26%, at $25.03. The 7.1% series 3 dollar-denominated noncumulative callable preference shares (NYSE: BCSPA) had slid 40 cents, or 1.57%, to $25.03.

Deutsche Bank AG’s 7.6% trust preferred securities (NYSE: DTK) were meantime off 35 cents, or 1.38%, at $24.94, while the 8.05% TruPs (NYSE: DKT) dropped 23.7 cents to $25.27.

Royal Bank of Scotland Group plc’s 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) were meantime down 56 cents, or 2.22%, at $24.63. The 6.6% series S noncumulative dollar preference shares (NYSE: RBSPS) drifted off 57 cents, or 2.29%, to $24.35.

Meanwhile, Wells Fargo & Co.’s 5.5% series X class A noncumulative perpetual preferreds (NYSE: WFCPX) ended up 2 cents at $25.44. The preferreds were slightly weaker at $25.405 at mid-morning.

The 5.7% series W class A noncumulative preferreds (NYSE: WFCPW) closed 5 cents higher at $26.33.

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