PG&E preferreds drop on planned bankruptcy; Citigroup drops; Stanley Black & Decker down

By James McCandless

San Antonio, Jan. 14 – Replicating the negativity experienced Friday, the preferred space started a new week moving lower.

Leading trading volume, PG&E Corp.’s 6% cumulative nonredeemable first preferred stock saw a multi-point drop after the company said it will file for bankruptcy.

Meanwhile, in finance, Citigroup Inc.’s 6.875% series K fixed-to-floating rate non-cumulative preferreds declined.

Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds were gaining.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferreds joined the downward trend.

Toolmaker Stanley Black & Decker, Inc.’s 5.75% junior subordinated debentures due 2052 were also negative.

PG&E eyes bankruptcy

Electric utility PG&E’s 6% cumulative nonredeemable first preferred stock plunged.

The preferreds (NYSE: PCGPrA) were down $3.11 to close at $15.70 on volume of about 1.15 million shares.

On Monday, the company announced plans to file for Chapter 11 bankruptcy after concerns that it would incur a large accounting charge due to potential liabilities in recent wildfires in California.

Chief executive officer Geisha Williams resigned over the weekend.

Citigroup off

In the finance space, Citigroup’s 6.875% series K fixed-to-floating rate non-cumulative preferreds were declining.

The preferreds (NYSE: CPrK) lost 11 cents to close at $26.33 with about 432,000 shares trading.

On Friday, the preferreds rose 9 cents.

The company released its Q4 earnings on Monday, reporting a $1.61 per share profit outpacing analyst expectations of a $1.55 per share profit.

Elsewhere in finance, Goldman Sachs’ series D floating-rate non-cumulative preferreds went against Monday’s negativity.

The preferreds (NYSE: GSPrD) picked up 13 cents to close at $19.25 on volume of about 401,000 shares.

JPMorgan’s 5.75% series DD non-cumulative preferred stock was also falling.

The preferreds (NYSE: JPMPrD) were down 6 cents to close at $24.98 with about 312,000 shares trading.

On Friday, the preferreds lost 2 cents.

Stanley negative

Toolmaker Stanley Black & Decker’s 5.75% junior subordinated debentures due 2052 ended the session lower.

The debentures (NYSE: SWJ) shaved off 1 cent to close at $24.43 on volume of about 234,000 debentures.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.08% at the session’s close after opening 0.10% lower.

The iShares US Preferred Stock ETF was down 2 cents to $35.34.

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