Bank of America’s new preferreds continue to lead secondary trading; HSBC active, mixed

By James McCandless

San Antonio, May 9 – Traders reported a high level of activity in the secondary market for preferreds on Wednesday as Bank of America Corp.’s new issue continues to attract interest.

Bank of America’s new 6% series GG non-cumulative preferred stock continues to dominate volume on its second day in the market.

HSBC Holdings plc’s preference shares were mixed after the company issued a redemption notice for two of the securities on Friday.

AT&T, Inc.’s $25-par notes traded up as the company awaits a decision in its antitrust case over its attempted merger with Time Warner. The notes rose 9 cents to close at $24.84.

In its deal, Bank of America’s $1.2 billion issue of 6% series GG non-cumulative preferred stock continued to dominate the preferred market in volume on Wednesday, with about 3.5 million preferred shares changing hands.

The preferreds rose 1 cent to close at $25.02.

Meanwhile, HSBC’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares ended Wednesday mixed. The company announced last Friday that both issues would be redeemed on June 4.

The 8.125% shares lost 1 cent to close at $25.22 with about 337,000 shares traded.

The 8% shares gained 1 cent to close at $25.41 with about 458,000 shares traded.

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