Midday Commentary: Preferreds ending week with positive tone, focus on secondary; Citigroup rises

By Stephanie N. Rotondo

Phoenix, June 14 - The preferred stock market was seeing "a nice rally in the secondary; there's just not a lot of volume," a trader said on Friday.

Investors were focusing on the secondary over the primary, he noted, given that there were "maybe some better buys on secondary stuff" based on current yields.

He added that many recently priced issues were trading at discounts.

One of the most actively traded secondary issues at midday was Citigroup Inc.'s 6.45% trust preferreds (NYSE: CPW). Late Thursday, the bank said it was calling $954 million of the securities on July 15.

The paper was trading at $24.45, up 32 cents, or 1.26%.

The call price is equal to par plus 6.71875 cents of accumulated and unpaid dividends.

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