Preferred stock market sees quiet, stable end to week full of $25-par deals; PNC, Annaly rise

By Andrea Heisinger

New York, Sept. 21 - The preferred stock market was in its usual Friday state of low volume and some fluctuation in the most actively traded shares as of late morning in the New York session.

"The market's basically flat - up less than 1 cent," a trader said at midday. "There's decent liquidity."

By the time the market closed, it was still largely flat, ending down about 3 cents, a trader said.

"Stability's the name of the game," the trader added.

The recent 5.5% subordinated debentures priced at par of $25 by Aflac Inc. remained actively traded after topping volume at the close on Thursday.

The notes were seen at $24.78 in midday trading, which was the volume-weighted average price, a trader said, commenting that they were "all over the place" and at one point were seen off 37 cents.

Later in the day, they were the second most active issue of the day, with 1.28 million notes trading. They finished up 22 cents at around $24.77.

The recent 5.375% series Q perpetual preferreds from PNC Financial Services Group Inc. were the most actively traded issue of the day.

At midday, a trader quoted the preferreds as up 4 cents with 560,000 preferreds trading. By the close, there were 1.43 million preferreds traded, and they closed up at $24.85.

PNC's preferreds had closed at $24.80 on Thursday as the second most active deal.

There was also more volume seen in the Annaly Capital Management Inc. 7.5% series D preferreds, although a trader seemed somewhat confused by the popularity of the issue.

"I mean, they cut their common dividend, but it wasn't by a lot, maybe 5 cents," he said.

By the end of the day, 514,000 of those Annaly preferreds had traded, and they closed up 12 cents at $25.20.

Also seeing some trading activity was JPMorgan Chase & Co.'s 5.5% preferreds, which had 566,000 shares trade. They closed up 3 cents at $24.90.

A series T preferred from Royal Bank of Scotland saw 470,000 shares trade, ending up 1 cent at $22.89.

"There's nothing really that surprising today," a trader said after the close.

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