Morning Commentary: PG&E preferreds plunge; TCF Financial slides; AT&T $25-par notes up

By James McCandless

San Antonio, Jan. 7 – A new week in preferred trading started with mixed results as the Wells Fargo Hybrid & Preferred Securities Financial index opened up by 0.24%.

Outpacing the rest of the market to open the session was utilities name PG&E Corp.’s 6% first nonredeemable preferred stock.

The preferreds (NYSE: PCGPrA) were down $1.90 to $17.27 on volume of about 257,000 shares.

The market is reacting to news late Friday that PG&E is exploring the possibility of filing for bankruptcy within the next month.

The company anticipates a large accounting charge related to the company’s potential liabilities for wildfire damage in California.

Elsewhere, in the finance space, TCF Financial Corp.’s 5.7% series C non-cumulative perpetual preferreds were also declining.

The preferreds (NYSE: TCFPrD) were down 9 cents to $23.19 with about 72,000 shares trading.

Meanwhile, Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock was gaining at the open.

The preferreds (NYSE: BACPrK) picked up 21 cents to $25.08 on volume of about 65,000 shares.

Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities were slightly lower.

The preferreds (NYSE: DKT) edged down 1 cent to $25.04 with about 50,000 shares trading.

Telecom giant AT&T Inc.’s 5.35% global notes due 2066 were on the rise at the start of Monday activity.

The notes (NYSE: TBB) were up 18 cents to $23.17 on volume of about 70,000 notes.

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