New preferreds expected this week; Digital Realty ticks down a touch; overall market flat

By Christine Van Dusen

Atlanta, March 24 - The preferred stock market was somewhat "sleepy" on Monday morning and inexplicably popped up at mid-afternoon - with some activity for Fannie Mae, Freddie Mac and Digital Realty Trust Inc. - before settling flat to Friday as investors anticipated new issues this week.

"It's a sleepy day, with not much volume. Bonds are flat and stocks are flat," a trader said. "I do think there are going to be a couple of deals this week, though."

In trading on Monday, U.S. Bancorp's floating-rate depository shares, series B, non-cumulative perpetual preferred stock were the busiest at day's end, finishing up about 32 cents at $21.62 on 1.69 million shares traded.

Citigroup Capital XIII's series N preferred stock was flat at $27.60 on 770,000 shares traded.

And American Realty Capital Properties Inc.'s preferreds finished the day off 4 cents at $27.76 on 359,000 shares traded.

"Volume was on the light side for paying securities," a market source said.

Also during the session, the recent $300 million issue of 7.375% series H cumulative redeemable preferreds from Digital Realty traded Monday morning at $24.75 bid, $24.82 offered, a trader said.

Last week the stock was quoted in the $24.80 to $24.83 context before moving to $24.62 bid, $24.72 offered.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.

The San Francisco-based company intends to contribute proceeds to its operating partnership, which will use the funds to repay borrowings under a global revolving credit facility, to acquire additional properties, for development opportunities and/or for general corporate purposes, including the potential repurchase or redemption of outstanding debt or preferred securities.

Preferreds mixed

Among other preferreds traded on Monday, Deutsche Bank Contingent Capital Trust V's 8.05% trust preferred securities were spotted at $27.77, down 2 cents on 12,594 shares traded.

Barclays Bank plc's 7¾% non-cumulative callable dollar preference shares, series 4, ADR traded at $25.80, up 4 cents on volume totaling 10,961 shares.

And Citigroup Capital XI's 6% TruPS capital securities were quoted Monday at $25.09, up a penny on just 8,228 shares traded.

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