Preferreds steady as volume improves; Ally declines amid CEO exit; Triangle Capital on tap

By Stephanie N. Rotondo

Phoenix, Feb. 3 – The preferred stock market was holding its own as Australia unexpectedly cut its interest rates and Germany’s 10-year bond yields fell below Japan’s for the first time.

The Wells Fargo Hybrid and Preferred Securities index ended up 1 basis point.

Though the overall market was little changed on the day, a source said that the most actively traded issues all ended weaker.

Still, he noted that volume experienced a “dramatic improvement.”

Morgan Stanley & Co. Inc.’s 6.375% series I fixed-to-floating rate noncumulative preferreds (NYSE: MSPI) ended down 4 cents at $26.04, with nearly 1.4 million shares being exchanged. Bank of America Corp.’s 6.5% series Y noncumulative preferreds (NYSE: BACPY) meanwhile dipped a penny to $25.30, on about 1.09 million shares trading.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPA) were also among the day’s most actively traded issues as investors reacted to news of a new chief executive officer.

The preferreds finished the day at $26.29, down 3 cents. The 8.5% series A fixed-to-floating rate perpetual preferreds (NYSE: ALLYPB) fell 16 cents to $26.23.

Meanwhile, Triangle Capital Corp. said it was offering $50 million of $25-par notes due 2022, with price talk in a 6.375% to 6.5% range, according to a trader.

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