Fannie, Freddie preferreds fall in line with tone of market; Ally As trade up, Bs trade down

By Stephanie N. Rotondo

Portland, Ore., May 17 - The preferred stock space "sold off with the market," a trader said Tuesday.

Even Fannie Mae and Freddie Mac preferreds - which have been climbing upward as investors speculate what will become of the mortgage backers - lost ground, falling 15 cents to 20 cents, the trader said.

Both Fannie Mae and Freddie Mac continued to be very active, but Ally Financial Inc.'s series A preferreds managed to come in as the day's top trader, another market source said. The series B preferreds, however, were not as active as they usually are.

Fannie, Freddie dip

A market source saw Freddie Mac's 8.375% preferreds - the day's second most actively traded issue - fall 16 cents to end at $2.86.

The source also saw Fannie Mae's 8.25% preferreds drop 11 cents to close at $2.74.

Another source saw Fannie Mae's 5.5% $50-par preferreds dip the most of the issuer's preferreds - about 50 cents - to end at $4.50.

The source said that of Freddie Mac's preferreds, its 6.42% $50-par issue was off the most, losing 65 cents to end at $5.25.

Ally As take over

Ally Financial's 8.125% series A preferreds were the day's most actively traded listed security. About 1.86 million shares changed hands. The preferreds traded up a nickel to $26.30.

Conversely, the 8.5% series B preferreds slipped a penny to $26.46. Just over 263,000 of the Bs turned over.

Ally is a Detroit-based bank.

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