HSBC called notes lead secondary market; Bank of America down as new issue announced

By James McCandless

San Antonio, May 7 – The preferred market saw a modest amount of activity on Monday, according to traders, as the secondary market was dominated by issues being called.

HSBC Holdings plc securities fell after the company issued a redemption notice for two series of capital securities on Friday.

Bank of America Corp. preferreds were down as the company announced a new preferred issue on Monday morning. The $1.2 billion offering of preferreds then priced after the close with a 6% dividend, in line with talk.

Energy Transfer Partners, LP’s recent issue started the week atop the preferred market in volume again.

HSBC issues redemption notice

HSBC’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares fell as the company announced last Friday that both issues would be redeemed on June 4, 2018.

“A lot of people are trying to position themselves for when the redemption occurs,” a trader said.

The 8.125% preference shares lost $1.09 to close at $25.27 with about 689,000 shares exchanged.

The 8% preference shares lost 74 cents to close at $25.44 with about 805,000 shares exchanged.

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