AT&T preferreds lower on DOJ probe; Barclays better; broader preferred market mixed

By James McCandless

San Antonio, April 20 – The preferred market saw a large increase in overall volume, trading higher to close the week.

AT&T Inc.’s preferreds declined as the Department of Justice announced an antitrust probe against the company, alleging cooperation between it and Verizon.

Barclays plc’s preferreds traded up as the company’s CEO emerges relatively unscathed after a U.K. regulator issued a modest fine for his efforts to uncover the identity of a whistleblower.

National Retail Properties, Inc. saw a sharp decline in trading with unusually high volume.

The Wells Fargo Hybrid & Preferred Securities Financial index jumped up 0.34% at market close Friday, reversing the 0.04% decline seen in early trading.

The iShares US Preferred Stock ETF fell 2 cents to close at $37.29.

AT&T down

AT&T’s preferreds saw a decline to end the week Friday amid reports that the Department of Justice has opened an antitrust probe against the company to investigate allegations of cooperation with Verizon and a telecommunications standards organization to hinder consumers from easily switching wireless carriers.

The company is already embroiled in an antitrust lawsuit over its attempted merger with Time Warner, a move that executives from both companies argue is necessary to compete against large internet companies.

With about 145,000 shares trading hands, the preferreds fell 13 cents to close at $24.90.

Barclays CEO fined

Barclays’ preferreds traded again at almost double their normal volume, with about 282,000 shares exchanged, after reports confirmed that CEO Jes Staley will be fined no more than $2 million for his attempt to uncover the author of an anonymous letter criticizing a senior executive. British regulators said that the action represented a breach of individual conduct.

The company is also facing pressure from an activist investor to open up a seat on the board and to increase profitability in its investment division.

The series D preferreds closed up 2 cents at $26.10.

National Retail swept up

Meanwhile, National Retail Properties saw a surge in trading of its 5.7% series E preferred stock.

The preferreds saw about 682,000 shares trade, skyrocketing past its average volume of about 35,000.

This week, the company declared its quarterly dividend for its common stock.

The preferreds lost 49 cents to close at $24.11 on Friday.

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