HSBC preferreds decline as redemption date nears; Bank of America improves with market

By James McCandless

San Antonio, May 24 – Traders reported a muted day in preferred trading in anticipation of the long holiday weekend.

HSBC Holdings plc’s preference shares declined as the redemption date for its 8% and 8.125% securities inches closer.

The company announced recently that both issues would be redeemed on June 4.

The 8.125% shares (NYSE: HSEA) lost 24 cents to close at $25.00.

The 8% shares (NYSE: HSEB) declined 4 cents to close at $25.36.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock continued its run among the most-active preferred issues this week.

Bank of America’s $1.2 billion issue of 6% series GG preferreds (NYSE: BACPrB) continued to take a leading position in preferred stock trading with about 913,000 shares trading.

The deal came to market a few weeks ago and has regularly been among the most active issues.

The preferreds were up 9 cents to close at $25.35.

Legacy Reserves LP’s series B fixed-to-floating rate cumulative redeemable perpetual preferred units dived again.

The 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units have been in decline as traders expect the company to forego payment on its quarterly dividend.

The units (Nasdaq: LGCYO), which have a $25.00 liquidation preference, lost $1.34 to close at $8.86.

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