Freddie Mac issues drop, take top trading spot for day; Royal Bank of Scotland gains ground

By Stephanie N. Rotondo

Portland, Ore., Sept. 20 - A trader said preferred stocks experienced "a little bit of a rebound" Tuesday, but overall, traders were still lamenting a lack of flow.

"There was a little bit better volume," one trader said, adding that the day's most actively traded issues were those of Freddie Mac.

The issues traded down on the day. In contrast, Royal Bank of Scotland Group plc's preferreds rose.

In recent new deals, Qwest Corp.'s new issue was trading higher. One market source said the deal is expected to officially list on Wednesday.

Freddie Mac trades actively

Freddie Mac issues were the most active securities of the day, according to a trader.

Volume was 1.7 million preferreds for the issuer's 5.7% noncumulative perpetual preferreds (OTCBB: FMCKP). The preferreds dropped 30 cents, or 8.57%, to $3.20.

The variable-rate noncumulative perpetual 2006 series preferreds (OTCBB: FMCCS) meantime lost a nickel, or 1.47%, to close at $3.35. Nearly 1.4 million preferreds changed hands.

Also busy was Countrywide Financial Corp.'s 7% capital securities (NYSE: CFCPB). The securities gained 7 cents, or 0.35%, to end at $20.05. Almost 917,000 securities traded.

RBS boosted

With a bit of renewed hope that Europe, specifically Greece, might be able to contain its financial crisis, investors pushed up Royal Bank of Scotland paper.

Both the 6.6% series S noncumulative dollar preference shares and the 7.25% series T noncumulative dollar preference shares - which were down in the previous session - gained ground. The Ss (NYSE: RBSPS) moved up 74 cents, or 6.76%, to $11.68, while the Ts (NYSE: RBSPT) rose 95 cents, or 7.88%, to $13.00.

Both issues are currently non-paying but are supposed to begin paying in 2012.

Qwest to list Wednesday

Qwest's 7.5% $25-par senior notes due 2051 - a $500 million deal that priced Sept. 14 - are expected to list on the New York Stock Exchange on Wednesday, according to a trader. The ticker symbol is expected to be "CTW."

Ahead of the listing, the notes were trading higher at $24.90 bid, $24.95 offered, the trader said.

Another trader quoted the issue at $24.80 bid, $24.95 offered.

Qwest is a subsidiary of Monroe, La.-based CenturyLink Inc.

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