Market seeks direction from Fed; Citigroup's new deal comes in; Kayne Anderson lists on NYSE

By Stephanie N. Rotondo

Phoenix, Sept. 17 - Preferred stock investors are waiting to see what comes out of a Federal Open Market Committee meeting happening Tuesday and Wednesday, a trader said.

As such, overall trading was thin aside from a handful of issues.

No new issues have been launched, but the trader opined that if the market sees a "jump in price," the deals could start flowing more freely.

In recent deals, Citigroup Inc.'s $900 million of 7.125% fixed-to-floating rate noncumulative perpetual preferreds continued to be active, though the issue came in a little during Tuesday's session.

A trader said the issue was offered at $24.98 early in the day, but that it was at $24.92 bid, $25.03 offered as of midday.

And, Kayne Anderson MLP Investment Co.'s $50 million of 4.6% series G mandatory redeemable preferreds - a deal that came Sept. 9 - listed on the New York Stock Exchange under the ticker symbol "KYNPG."

The issue was trading up 6 cents at $24.36 at midday.

HSBC Holdings plc's floating rate series G noncumulative preferreds (NYSE: HBAPG) were meantime seeing massive trading, with over 3.6 million shares changing hands as of midday. The preferreds were up a nickel at $19.60.

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