Midday Commentary: No pop on E.U. bailout news; Entergy holding in; GE Capital hybrids do well

By Stephanie N. Rotondo

Phoenix, June 29 - It was a "pretty dead Friday," a preferred stock trader reported at midday.

The secondary space, he said, was "up marginally" on news that the European Union had come to terms on a deal to bail out Spanish and Italian banks. But the gains were not as much as he expected.

"I thought we'd see more of a pop," he said.

Away from things spurred by the bailout news, PNC Financial Services Group, Inc.'s 8% enhanced trust preferreds issued by National City Capital Trust IV (NYSE: NCCPC) were trading actively as investors responded to news out late Thursday regarding a redemption of two series of trust preferreds.

The issue was trading down, however, at midday, falling six cents to $25.22.

Among new issues, Entergy Louisiana LLC's new $200 million of 5.25% $25-par first mortgage bonds due July 1, 2052 were holding in a $25.25 to $25.30 range.

A trader also noted that General Electric Capital Corp.'s $2.25 billion issue of 7.125% series A fixed-to-floating-rate noncumulative perpetual preferred stock "has been cranking up."

He saw the $100,000-par paper trading at 105 3/8 bid.

The issue priced June 7.

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