Zions' series C preferreds see spike in trading volume; Fifth Third, Wells Fargo call issues

By Stephanie N. Rotondo

Portland, Ore., Sept. 1 - As the week began to wind up ahead of the holiday weekend, preferred stocks "started the day OK and then ended softer," a market source said Thursday.

"Everything was down slightly, but not much," said another source. He was not sure what had put the kibosh on the recent run up, but he noted that there was "poor economic news" out and that perhaps investors were "selling off into the weekend."

"Volatility is here for a while," he added.

Zions Bancorporation experienced an unusual amount of activity, according to a market source. He said he was "perplexed" by the trading, as there was no news out to drive the volume - or the price - higher.

Meanwhile, Ally Financial Inc. and Bank of America Corp. continued to be a major focus of preferred investors. After gaining ground Wednesday, Ally's preferreds turned downward. Bank of America, on the other hand, was mixed.

Though overall news affecting the preferred world was non-existent, two banks - Fifth Third Corp. and Well Fargo & Co. Inc. - announced redemptions on Thursday.

On the new issue front, Preferred Apartment Communities, Inc. announced plans to issue $2 million to $150 million of preferred stock units containing one 6% series A redeemable preferred share and one warrant. International Assets Advisory LLC is the dealer manager.

Zions sees volume spike

A market source saw Zions' 9.5% series C non-cumulative perpetual preferreds (NYSE: ZBPC) trading actively - over 546,000 preferred changed hands - but it was unclear to him what had caused the action.

"They did list a whole group of senior executives that disposed of their common stock, but that would have had the opposite effect," he said, referring to the preferred's modest gain. They closed a penny higher at $25.41.

"I'm a little perplexed," he said. "I didn't see any real news."

Zions is a Salt Lake City-based bank.

Ally, BofA active

Ally Financial and Bank of America continued to get attention from investors during Thursday trading.

But Ally, for its part, closed weaker after gaining ground in the previous session.

The 8.5% series A preferreds (NYSE: ALLYPA) fell a nickel to $21.30, while the 8.125% series Bs (NYSE: ALLYPB) dropped 30 cents to $20.32.

Bank of America's structure, on the other hand, was mixed.

The 8.2% series H depositary shares (NYSE: BACPH) improved by 2 cents to close at $24.92. The Merrill Lynch 8.625% series Qs (NYSE: BMLPQ), however, fell 11 cents to $25.09.

Fifth Third, Wells call issues

Both Fifth Third and Wells Fargo announced redemptions on Thursday.

Fifth Third said it will redeem $25 million of R&G Capital Trust I's floating-rate securities on Oct. 24.

Wells Fargo meantime said it was calling four series of preferreds, including two $1,000-par issues.

The bank is redeeming $837.5 million of the 7.85% trust preferreds of Wachovia Capital Trust Z, $2.5 billion of the $1,000-par 7.7% fixed-to-floating-rate normal PPS preferreds of Wells Fargo Capital XIII, $690 million of the 8.625% enhanced trust preferreds of Wells Fargo Capital XIV and $1.75 billion of the $1,000-par 9.75% fixed-to-floating rate normal PPS shares of Wells Fargo Capital XV.

The redemption date for the Wells Fargo issues is Oct. 3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.