Preferreds soften; Sterling Bancorp prices $225 million; Bank of America, U.S. Bancorp lower

By Cristal Cody

Tupelo, Miss., Oct. 28 – Preferred stocks ended Wednesday mostly softer along with equities as the growing number of global Covid-19 infections pressured the financial markets over the session.

The U.S. iShares Preferred Stock ETF shed 64 cents, or 1.74% to $36.13.

The Wells Fargo Hybrid and Preferred Securities index declined 29.21, 1.17%.

Meanwhile, one issuer tapped the primary market.

Sterling Bancorp priced $225 million of 10-year fixed-to-floating-rate subordinated notes in an offering upsized from $200 million.

Deal volume week to date includes $1.1 billion of 4.375% 25-par perpetual non-cumulative preferreds (Baa3/BBB-/BBB) that priced on Tuesday from Bank of America Corp.

The preferreds, admitted for temporary trading under the symbol “BACPL,” headed out on Wednesday down at $24.92 on trading volume of about 10.5 million shares.

U.S. Bancorp’s new 3.75% series L non-cumulative perpetual preferred stock (A3/BBB/BBB+) declined over the session.

The preferreds, trading under the temporary symbol “UBKPL,” closed the day down 53 cents, or 2.18%, at $23.77 on about 325,000 shares traded.

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