Bank of America’s recent 6% preferreds start slow week down; Allstate edges lower

By James McCandless

San Antonio, May 21 – Traders reported a slow start to the week in the preferred market.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock opened the week trading actively and lower.

Allstate Corp.’s recent series G preferreds were also seen trading down slightly.

Citigroup Inc.’s series K preferreds were also active, following recent market interest in financial names.

Bank of America leads

Bank of America’s $1.2 billion issue of 6% series GG non-cumulative preferred stock started the week among the leaders in trading volume with about 900,000 shares trading.

The deal came to market a few weeks ago and has routinely placed first in volume for preferred stock.

The preferreds lost 6 cents to close at $25.18.

Allstate down

Allstate’s 5.625% series G non-cumulative perpetual preferred stock was active.

The preferreds traded 1 cent lower to $25.35 on double the issue’s average volume with about 473,000 shares changing hands.

Citigroup level

Citigroup’s 6.875% series K fixed-to-floating rate non-cumulative preferred stock was the latest financial name to see significant trading activity.

Traders report that recent preferred stock redemptions announced by Bank of America and General Electric Co. have investors trying to position themselves in financial names.

The Citigroup preferreds were level at $27.03.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended trading up 0.01%, tapering off the 0.08% gain in early trading on Monday.

The iShares US Preferred Stock ETF was down 2 cents to $36.94.

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