RBS preferreds strengthen on earnings; Citi ends mostly firm; Montpelier gives back gains

By Stephanie N. Rotondo

Portland, Ore., May 6 - A trader said it was "mostly green" in the $25-par preferred stock space on Friday, though he noted that it was mixed in the capital securities arena.

Royal Bank of Scotland Group plc reported first-quarter earnings during the session. The results were better than expected, which gave the bank's preferred shares a boost.

"They are doing much better and could turn their dividend back on," a trader said.

The 6.125% series R preferreds were up 19 cents to close at $17.46, while the 6.25% series I preferreds gained the most, closing 21 cents higher at $16.05.

On the flip side, the 7.25% series H preferreds lost 11 cents to close at $23.62.

Another trader said the most-active RBS issue was the 5.75% series L preferreds, which gained 8 cents to close at $19.18.

RBS is 83% owned by the U.K. government after receiving bailout funds during the economic crisis.

Also in the financial realm, Citigroup Inc. continued to see a decent amount of action. The preferreds were mostly higher, helped out in part by an analyst that opined the financial institution could return as much as $64 billion to shareholders.

Montpelier Re Holdings Ltd.'s new 8.875% perpetual non-cumulative preferreds "traded off a little bit," a trader said. He quoted the paper at $25.20 bid, $25.30 offered, down 3 to 5 cents on the day.

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