Customers Bancorp wanes; BofA set to list on NYSE; primary quiet ahead of Fed meeting

By Stephanie N. Rotondo

Seattle, April 25 – The preferred stock market had a negative tone as the week kicked off on Monday.

The Wells Fargo Hybrid and Preferred Securities index closed of 10 basis points. The index was down 4 bps at mid-morning.

Deals priced last week continued to be in focus. A trader saw Customers Bancorp Inc.’s $50 million of 6.45% series E fixed-to-floating rate noncumulative preferreds at par bid, $25.05 offered.

The issue closed at $25.06 on Friday.

The issue priced Thursday.

Bank of America Corp.’s $900 million of 6% series EE noncumulative preferreds – a deal priced April 18 – were meantime pegged at $25.15 bid, $25.20 offered.

A market source said the issue is expected to hit the New York Stock Exchange on Tuesday. The ticker symbol will be “BACPA.”

As for the current week’s new issue pipeline, a trader said he was hearing that “maybe there will be some deals later in the week.” He also noted that the first part of next week should bring a few new issues.

The market could be holding off on pushing out any deals until after midweek, as the Federal Reserve is scheduled to meet Tuesday and Wednesday to discuss its monetary policy. It is widely believed that the central bank will hold interest rates steady and that the focus will be inflation.

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