Preferred market getting busier; Ally takes top trading spot, ends firm; Citi dips; RBS mixed

By Stephanie N. Rotondo

Portland, Ore., April 26 - A market source said the preferred stock market was "definitely busier," and better, during Tuesday's session.

"That's a positive," he said.

He said that about $722 million face value of preferreds changed hands, noting that "busy days" in previous weeks have been closer to $400 million.

However, with little to no news out to drive the preferred market, investors remained focused on Ally Financial Inc.'s two series of preferreds. More than 2 million shares of each series turned over, and both issues ended the day stronger.

Also active on the day was Citigroup Inc.'s series H preferreds - a $100-par security - and Royal Bank of Scotland Group plc's series L preferreds.

Ally preferreds gain

Ally Financial's 8.125% series A preferreds dominated trading, with about 2.76 million shares changing hands.

A market source saw the shares closing 6 cents higher at $26.01.

The 8.5% series B preferreds meantime gained a dime, closing at $26.04, the source said.

About 2.09 million of the series B preferreds traded.

Ally is a Detroit-based bank.

Citi slips, RBS mixed

Citigroup's 7.5% series H $100-par securities dipped 79 cents, or 0.61%, to $128.40, a source said.

Elsewhere, RBS' 5.75% series L preferreds were called "quite active," with nearly 640,000 shares trading. The preferreds ended 3 cents weaker at $18.83.

RBS' 7.25% series T preferreds, however, gained 11 cents to finish at $19.82. Approximately 270,000 of the preferreds turned over.

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