Preferred stocks end day off a dime; new issues up in trading, including new Protective Life

By Andrea Heisinger

New York, May 16 - No new preferred stock deals priced on Wednesday, and not much was seen in trading, sources said.

Following the release of minutes from the Federal Reserve Federal Open Market Committee meeting in the early afternoon, there wasn't much reaction in the preferred market, although bonds were seen rallying, a trader said.

"There was nothing too unexpected," the trader said. "Not too much happening besides Greece being a pain."

The new Protective Life Corp. 6.25% subordinated debentures due 2042 that priced at par of $25.00 late Tuesday weren't seen immediately in trading, the trader said, but a second trader quoted them as up 25 cents later in the day at $25.00.

New deals could keep trickling out of the pipeline, the first trader said.

"If we stay in this environment of low rates, we should see more new issues headed our way."

There was news that Apartment Investment and Management Co. will redeem its class T, class V and class Y cumulative preferred stock, a source said.

"There's a lot of noise out there right now," a trader said after the close, adding that the market was off between 9 cents and 10 cents per share.

"Looking at the stuff actively traded, new issues are the more liquid part of the market. It was definitely a red day apart from active issues."

Contributing factors were continuing headlines out of Greece and Spain, which caused banks - especially those in Europe - to take a beating. Some names were off as much as 70 cents on the day, or 4.45%, the trader said.

"You'd rather not be a continental European bank than be a continental European bank right now."

Aimco plans redemptions

Apartment Investment and Management will redeem all 6 million of its class T preferreds, 2,587,000 class V preferreds and 3.45 million class Y preferreds on June 15 at $25 plus accrued dividends, according to a press release Wednesday.

The redemption payment will be $25.34 for the class T and class V preferreds and $25.338 for the class Y preferreds.

The series T preferreds were on the most-actively traded list for the day, with 470,000 shares changing hands, and they ended off 1 cent at $25.32, a trader said.

The real estate investment trust for apartment communities is based in Denver.

New issues remain active

New and recent issues made up the most actives list for the day, a source said.

PNC Financial Services Group, Inc.'s 6.125% series P preferreds had 2,833,000 trade for the day, ending up 2 cents at par.

The SCE Trust I 5.625% series F preferreds from Southern California Edison Co. remained active at 2,057,000 shares trading, ending up 5 cents on the day at $24.80.

Investors traded 1.67 million of Protective Life's new 30-year subordinated debentures, and they ended up 25 cents on the day at par.

Annaly Capital Management, Inc.'s 7.625% preferreds were back on the most actives list with 597,000 shares trading, and they ended up 15 cents at $24.95.

Rounding out the top five were PS Business Parks Inc.'s 6% series T preferreds, which broke the trend of ending the day up. There were 520,000 shares traded, and they ended flat at $24.50.

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