AT&T preferreds little moved as trial continues; Allstate secondary trading mixed

By James McCandless

San Antonio, April 16 – Traders reported a low-volume day in the preferred market.

AT&T Inc.’s preferreds started the week level with muted volume as its antitrust trial develops.

Allstate Corp.’s preferreds, including its recent $500 million issue of $25-par 5.625% series G perpetual preferred shares, were mixed to start the week on lower volume.

Aegon NV’s $525 million 8% non-cumulative subordinated notes, which are scheduled to be redeemed next month, was another volume leader.

AT&T level

AT&T saw about 150,000 of its preferred shares change hands on Monday, facing downward pressure but closing at Friday’s levels.

The activity came as the company continues to argue against the Department of Justice over AT&T’s attempted merger with Time Warner and whether or not the move would benefit or harm consumers.

Reports confirmed that the CEOs of both companies will testify in favor of the merger this week.

The preferreds stayed at $25.07.

Allstate mixed

Allstate’s recent $500 million pricing of 5.625% series G perpetual preferred shares traded down, with about 133,000 shares traded. The series B shares were muted with about 49,000 shares changing hands.

The series G preferreds lost 1 cent to close at $24.34. The series B preferreds gained 8 cents to close at $25.61.

Aegon leads in volume

With 213,000 shares trading, Aegon saw most of the day’s activity with its $525 million 8% non-cumulative subordinated notes, which the company is redeeming on May 15.

The notes remained level at $25.44.

Indexes gain

The Wells Fargo Hybrid & Preferred Securities Financial index closed up 0.03% after reaching that level in early trading on Monday.

The iShares US Preferred Stock ETF traded up 7 cents to close at $37.24.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.