Morning Commentary: Bank of America’s new preferreds lead market; HSBC’s perpetuals active

By James McCandless

San Antonio, May 9 – Bank of America Corp.’s new $1.2 billion issue of 6% series GG non-cumulative preferred stock led the market early Wednesday with about 977,000 shares changing hands.

The deal was announced Monday morning.

BofA Merrill Lynch was the bookrunner.

The notes will be callable after five years.

The new preferreds were down 1 cent to $25.01 in early trading on Wednesday.

HSBC Holdings plc’s 8.125% and 8% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares were leading the market in trading volume with about 104,000 and 101,000 shares trading hands, respectively.

The company announced last Friday that the preference shares would be redeemed on June 4.

Both shares were level in early Wednesday trading.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.11% in early trading, adding to the 0.14% decline at market close on Tuesday.

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