Synovus preferreds improve; Ally Financial weakens; Wells Fargo reverses decline

By James McCandless

San Antonio, July 5 –The preferred market returned to hefty volume after the market closed for the Fourth of July holiday.

Synovus Financial Corp.’s recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock took the lead in secondary trading.

Ally Financial Inc.’s series 2 fixed-to-floating rate trust preferred securities saw an increase in activity.

Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred stock reversed recent declines.

Synovus rises

Synovus’ recent $200 million 6.3% series D fixed-to-floating rate non-cumulative perpetual preferred stock claimed the top spot in secondary trading post-holiday.

The series D preferreds (NYSE: SNVPrD) were up 7 cents to close at $25.79 on volume of about 225,000 shares.

On Monday, the company announced plans to pay about $130 million to redeem its outstanding series C fixed-to-floating rate non-cumulative perpetual preferred stock.

Ally Financial falls

Ally Financial’s series 2 fixed-to-floating rate trust preferred securities saw increased attention in trading on Thursday.

The preferreds (NYSE: ALLYPrA) were down 12 cents to close at $26.22 with about 218,000 shares trading.

Wells Fargo up

Wells Fargo’s 8% series J non-cumulative perpetual class A preferred stock saw a reversal of recent losses on the day.

Last week, the bank passed the most recent series of Federal Reserve stress tests and raised its dividend for its common stock.

The preferreds (NYSE: WFCPrJ) were up 4 cents to close at $25.68 on volume of about 190,000 shares.

On Tuesday, the preferreds were down 1 cent.

Indexes show gains

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.28% at market close, rising past the 0.02% gain in early trading on Thursday.

The iShares US Preferred Stock ETF was up 9 cents to $37.92.

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