Banks remain most active, end mixed; buyers remain for RBS; Aegon preferreds day's top gainer

By Stephanie N. Rotondo

Portland, Ore., Oct. 5 - Preferred stocks were "bouncing off of yesterday's lows," a trader said Wednesday.

Still, he lamented that volume was thin. "Everyone wakes up to see what's happening in Europe and then goes back to bed."

Another trader agreed that it was quiet, noting that "everything was up."

"It was kind of all over the place today," another market source said. "It's definitely mostly green, but there's a fair amount of red in there too."

Banks like Citigroup Inc. and Bank of America Corp. continued to dominate trading, and even Goldman Sachs Group, Inc. got in on the action.

However, there was no clear trend and bank preferreds were mixed on the day.

A trader also noted that buyers for Royal Bank of Scotland Group plc remained, helping the preferreds move up modestly.

The day's biggest percentage gainer was Aegon NV, though volume was not overly active and there was no news out to cause the increase.

Meanwhile, a trader remarked that real estate investment trusts were "doing exceptionally." Specifically, he said Public Storage preferreds were a "strong performer."

However, the day's biggest percentage loser was CommonWealth REIT.

Banks busy, mixed

Banks continued to be active and mixed during midweek trading.

Citigroup's 7.875% fixed-to-floating trust preferreds (NYSE: CPN) gained 9 cents, closing at $25.34, while the 6% trust preferreds (NYSE: CPS) fell a nickel to $20.68.

In the Bank of America complex, the 8.2% series H depositary shares (NYSE: BACPH) rose 24 cents to $21.28.

Goldman Sachs paper was also trading actively. The 6.125% $25-par notes due 2060 (NYSE: GSF) moved up a dime to $24.31, while the floating-rate series D noncumulative preferreds (NYSE: GSPD) dropped 50 cents, or 2.87%, to $16.95.

HSBC Holdings plc's 8% exchangeable perpetual subordinated capital securities (NYSE: HCSPB) lost a nickel, ending at $25.10.

RBS headed higher

A trader said that buyers were continuing to seek out Royal Bank of Scotland preferreds, giving the recently beat-down paper a bit of a boost.

The 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) improved by 21 cents, or 1.80%, to $11.87.

There has been no fresh news out on the Edinburgh-based bank, but the preferreds tend to trade in line with market sentiment regarding the European economic crisis.

Aegon big gainer

The day's biggest gainer - likely on news reports that Europe was planning to develop a plan to shore up its banks - was Aegon.

The 6.375% perpetual capital securities (NYSE: AEH) increased by $1.01, or 5.96%, to $17.96. The 6.5% perpetual capital securities (NYSE: AED) meantime gained 89 cents, or 5.19%, to finish at $18.04.

Aegon is an insurance company based in the Hague, the Netherlands.

REITs doing well

REITs have been outperforming the rest of the market, according to a trader.

In particular, he said Public Storage was a "strong performer." However, the day did see losses for the REIT's preferreds.

The 6.35% series R cumulative preferreds (NYSE: PSAPR) lost 24 cents, closing at $25.32.

CommonWealth REIT was the day's biggest percentage loser. Its 6.5% series D cumulative convertible preferreds (NYSE: CWHPD) fell 95 cents, or 4.49%, to $20.20.

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