Midday Commentary: FOMC comments weighing on market; U.K. banks drop off as more capital needed

By Stephanie N. Rotondo

Phoenix, June 20 - Preferred stocks were "selling off," a trader said Thursday, in response to the Federal Reserve's FOMC comments made on Wednesday.

"People are fearing that rates will go higher," he said, as the Fed looks to taper off its stimulus program in the next year.

New issues remained unseen during the session, likely because of the weakness in the market. A trader said Full Circle Capital Corp.'s planned $30 million offering of $25-par notes due 2020 "seems to be doing well" and that pricing was expected on Tuesday.

"It could be earlier, but I doubt it," he said.

In the secondary, Royal Bank of Scotland Group plc and Barlcays Bank plc paper was softening after U.K. bank regulators said the institutions needed to raise more capital to shore up their balance sheets, though it would not be allowed to cut lending.

RBS' 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) were off 73 cents, or 2.97%, at midday, trading at $23.84. Barclays' 8.125% series 5 noncumulative callable dollar preference shares (NYSE: BCSPD) were down 7 cents at $25.30.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.