Preferred stocks finish mostly better; primary quiet; Fulton declines; Bank of America gains

By Cristal Cody

Tupelo, Miss., Oct. 29 – Preferred stocks remained better on Thursday along with stocks following Wednesday’s sell-off.

The U.S. iShares Preferred Stock ETF closed up 10 cents, or 0.28% to $36.23.

The Wells Fargo Hybrid and Preferred Securities index finished up 0.01%.

Equities recovered some after Wednesday’s sell-off that sent stock indices down more than 3%.

The Dow Jones industrial average closed Thursday up 0.52%, the S&P 500 gained 1.19% and the Nasdaq improved 1.64%.

The primary market was quiet over the day with no reported issuers offering new preferred stock deals.

Financials mixed

Fulton Financial Corp.’s 5.125% series A fixed-rate non-cumulative perpetual preferred stock, which started trading Thursday on the Nasdaq under the symbol “FULTP”, declined $1.36, or 5.27%, to $24.44 on trading volume of about 464,000 shares.

Fulton Financial sold $200 million of the $25-par preferreds on Oct. 22.

The preferreds are trading under the temporary symbol “FULPP” with the company expected to list the preferreds on the Nasdaq under the symbol “FULTP.”

Meanwhile, Bank of America Corp.’s $1.1 billion of 4.375% 25-par perpetual non-cumulative preferreds (Baa3/BBB-/BBB) that priced on Tuesday closed the day up 8 cents, or 0.32%, to $25 on about 1.9 million shares traded.

The preferreds are temporarily trading under the symbol “BACPL.”

Bank of America plans to apply to list the depositary shares representing the series NN preferreds on the New York Stock Exchange under the symbol “BACPrO.”

U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock (A3/BBB/BBB+) softened over the session after seeing early morning gains.

The preferreds, trading under the temporary symbol “UBKPL,” headed out down 16 cents, or 0.67%, at $23.61 on about 161,000 shares traded.

The issue was up 13 cents, or 0.55%, to $23.90 on trading volume of about 81,000 shares over the morning.

U.S. Bancorp’s preferreds closed Wednesday down 53 cents, or 2.18%, at $23.77 on about 325,000 shares traded.

U.S. Bancorp sold $500 million of the $25-par preferreds on Oct. 20.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “USBPrQ.”

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