Maiden creeps toward par; Ally volume decreases, still day's most active; financials firm

By Stephanie N. Rotondo

Portland, Ore., June 22 - A vote of confidence for Greece's prime minister on Tuesday helped the preferred market gain some ground come Wednesday, a trader said.

"Things moved up this morning with the Greece vote," he said.

However, after that, he said there were a lot of players sitting on the sidelines, waiting to see what the Federal Reserve was planning to do to help spur the economy.

"The market is waiting for direction," he said.

Another trader said, "It kind of felt like there was some strength today, particularly towards the end of the day."

In new issues, Maiden Holdings North America Ltd.'s recent issue of $25-par bonds was moving its way toward par.

Among established issues, Ally Financial Inc. remained the big trader, though volume was well down from previous sessions. The two series of preferreds ended mixed on the day.

Maiden inches toward par

Maiden Holdings North America's new 8.25% $25-par bonds moved up into a $24.80 bid, a trader said.

"It's a small deal," he said. "Once it gets to $25, people will start selling it again."

The $100 million issue - which priced Friday and freed to trade on Tuesday - closed at $24.70 bid in the previous session.

Maiden Holdings is a Pembroke, Bermuda-based reinsurance company.

Ally's volume lessens

Ally Financial's preferreds continued to dominate trading in PreferredLand, though volume was considerably less than it has been of late.

"They have been trading multiple millions [of preferreds]," a trader said. "They didn't even break a million today. It was definitely a lighter day than it has been."

The 8.5% series A preferreds (NYSE: ALLYPA) dropped a nickel, closing at par. Just over 841,000 preferreds traded, versus the 3.07 million preferreds that turned over on Tuesday.

About 736,300 of the 8.125% series B preferreds (NYSE: ALLYPB) changed hands, compared with 1.38 million in the previous session. They were unchanged at $24.70.

"These are doing a little bit better," the trader said of the Ally securities.

On Tuesday, the Detroit-based automotive financial services firm said it was launching a registered exchange offer for its 6.25% senior guaranteed notes due 2017.

Financials find strength

Other financials, such as Goldman Sachs Group, Inc. and Bank of America Corp., also made the day's most active list.

Goldman's F series baby bonds (NYSE: GSF) closed 11 cents higher at $24.83, while Bank of America's series H preferreds (NYSE: BACPH) gained a dime, ending at $25.84.

In the $1,000-par universe, Wells Fargo & Co. traded up a quarter point to nearly a half point, a trader said. The 7.7% paper closed at 102, while the 9.75% issue finished at 105.5.

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