Gabelli Dividend & Income taps preferred market; Regions Financial improves; AIG better

By James McCandless

San Antonio, June 4 – The preferred secondary market was generally positive on Tuesday.

Gabelli Dividend & Income Trust sold $50 million of $25-par series H cumulative preferred stock with a dividend of 5.375%.

Leading the secondary market, Regions Financial Corp.’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferreds and its 6.375% series A non-cumulative perpetual preferreds were both improving.

Elsewhere in finance, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities and Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities finished mixed.

Sector peer U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock followed the day’s trend higher.

Meanwhile, insurance provider American International Group, Inc.’s 5.85% series A non-cumulative perpetual preferreds were better.

Aircraft rental name Air Lease Corp.’s 6.15% series A fixed-to-floating rate non-cumulative perpetual preferred stock was also on the rise.

Gabelli prices

Gabelli Dividend & Income Trust sold $50 million of $25-par series H cumulative preferred stock with a dividend of 5.375% on Tuesday.

UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable after five years.

Regions improves

Leading trading volume, Regions Financial’s 5.7% series C fixed-to-floating rate non-cumulative perpetual preferreds and its 6.375% series A non-cumulative perpetual preferreds were both seen improving.

The series C preferreds (NYSE: RFPrC) were up 7 cents to close at $25.48 on volume of about 329,000 shares.

The series A preferreds (NYSE: RFPrA) were up 3 cents to close at $25.32 on volume of about 166,000 shares.

Elsewhere in the finance space, Deutsche Bank’s 8.05% and 6.55% trust preferred securities finished the session mixed.

The 8.05% preferreds (NYSE: DKT) lost 1 cent to close at $25.34 with about 299,000 shares trading.

On Monday, the preferreds traded down 19 cents.

The 6.55% preferreds (NYSE: DXB) gained 20 cents to close at $24.34 with about 192,000 shares trading.

On Monday, the preferreds declined by 13 cents.

Sector peer U.S. Bancorp’s 6.5% series F fixed-to-floating rate non-cumulative perpetual preferred stock followed the day’s positive trend.

The preferreds (NYSE: USBPrM) added 19 cents to close at $27.11 on volume of about 292,000 shares.

AIG better

Meanwhile, insurance provider AIG’s 5.85% series A non-cumulative perpetual preferreds were also better by the close.

The preferreds (NYSE: AIGPrA) picked up 2 cents to close at $26.33 with about 203,000 shares trading.

Air Lease rises

Air Lease’s 6.15% series A fixed-to-floating rate non-cumulative perpetual preferred stock was also taking flight.

The preferreds (NYSE: ALPrA) were up 10 cents to close at $26.70 on volume of about 152,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.33% by day’s end, more than tripling the 0.10% gain from early Tuesday trading.

The iShares US Preferred Stock ETF was up 17 cents to $36.54.

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