Bank of America’s recent 6% preferreds continue to lead market; HSBC’s perpetuals flat

By James McCandless

San Antonio, May 22 – Traders reported another slow day in preferred trading, citing the upcoming long holiday weekend.

Bank of America Corp.’s recently issued 6% series GG non-cumulative preferred stock continued to lead in trading volume.

With more than 770,000 of the preferreds changing hands, the securities closed up 1 cent to $25.19.

HSBC Holdings plc’s 8.125% perpetual subordinated capital securities exchangeable non-cumulative dollar preference shares jumped in activity as its redemption date nears.

The company recently announced that the preference shares would be one of two securities that would be redeemed on June 4.

The securities ended the day level at $25.23.

Meanwhile, Valley National Bancorp’s 5.5% series B fixed-to-floating rate non-cumulative perpetual preferred stock declined as its quarterly dividend is declared.

The preferreds, with about 197,000 shares changing hands, fell 9 cents to close at $25.58.

In the primary market, Ladenburg Thalmann Financial Services Inc. priced $40 million of 7% $25-par 10-year senior notes (Egan-Jones: A-) on Tuesday, according to a news release. The deal includes a $6 million over-allotment option.

Ladenburg Thalmann & Co. Inc. was the bookrunner.

The Miami-based financial services company will apply to list the notes on the New York Stock Exchange under the symbol “LTSF.”

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