Preferred stocks mostly improve as equities recover; bank, financial preferreds mixed

By Cristal Cody

Tupelo, Miss., Oct. 25 – Preferred stocks mostly improved as equities turned positive in trading on Thursday after softening in the previous two sessions.

The Wells Fargo Hybrid and Preferred Securities index closed up 0.20%. The U.S. iShares Preferred Stock ETF rose 0.61% over the day.

Bank and financial preferred shares were mixed in trading.

Associated Banc-Corp’s 5.875% series E non-cumulative perpetual preferred stock (Baa3/BB), which was down 3 cents at the start of the day, closed 6 cents, or 0.25%, better at $24.14 on volume of about 152,000 shares.

The bank holding company sold $100 million of the $25-par notes (NYSE: ASBPrE) on Sept. 19.

U.S. Bancorp’s $575 million of 5.5% series K non-cumulative perpetual preferred stock (NYSE: USBPrP) gained 17 cents, or 0.69%, on Thursday to $24.77 on volume of about 398,000 shares.

The $25-par preferreds priced on Aug. 7.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock (NYSE: JPMPrD) also improved 13 cents, or 0.52%, to $24.98 with 2.26 million shares trading.

JPMorgan sold $1.7 billion of the $25-par perpetual preferred shares on Sept. 17.

Meanwhile, Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock closed 2 cents weaker, or 0.08%, to $24.74 on about 476,000 shares traded. The preferreds (NYSE: BACPrK) ended the previous session down 6 cents.

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