NiSource’s new preferreds end under par; Deutsche Bank declines; AT&T’s $25-pars lower

By James McCandless

San Antonio, Nov. 29 – The preferred space was largely trading lower on Thursday, while one new issue garnered the market’s attention.

Utilities name NiSource Inc.’s new upsized $500 million series B fixed-rate reset cumulative redeemable perpetual preferred stock closed the day under par.

In secondary trading, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were falling under the shadow of a money laundering probe.

Elsewhere in finance, Regions Financial Corp.’s 6.375% series A non-cumulative perpetual preferreds were also lower.

Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock declined.

In telecom, AT&T Inc.’s 5.35% global notes due 2066 slid lower.

NiSource under par

At the top of the Thursday session, NiSource’s $500 million series B fixed-rate reset cumulative redeemable perpetual preferred stock closed under par on its first trading day.

The preferreds, trading under the temporary symbol “NISOP,” were spotted ending at $24.85 on volume of about 4.5 million shares.

The deal priced on Wednesday.

Deutsche Bank lower

At the top of the secondary space, Deutsche Bank’s 8.05% trust preferred securities ended lower.

The preferreds (NYSE: DKT) were down 28 cents to close at $25.00 with about 334,000 shares trading.

Early Thursday, news broke that German law enforcement officials had raided the Frankfurt offices of the company in connection to a money laundering probe, implicating two unnamed employees.

Elsewhere in finance, Regions Financial’s 6.375% series A non-cumulative perpetual preferreds joined the negative trend.

The preferreds (NYSE: RFPrA) lost 2 cents to close at $25.26 on volume of about 248,000 shares.

Bank of America’s 5.875% series HH non-cumulative preferreds also closed the trading day in decline.

The preferreds (NYSE: BACPrK) fell 9 cents to $24.36 with about 239,000 shares trading.

On Wednesday, the preferreds traded down 3 cents.

AT&T off

Meanwhile, in the telecom space, AT&T’s 5.35% global notes due 2066 slid in trading.

The notes (NYSE: TBB) dropped 18 cents to close at $22.55 on volume of about 222,000 notes.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.21% at the end of the session, giving back a 0.07% gain seen early Thursday.

The iShares US Preferred Stock ETF was down 9 cents to $35.25.

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