KeyCorp preferreds end mostly stronger on TARP repurchase; Sunstone pricing expected soon

By Stephanie N. Rotondo

Portland, Ore., March 30 - It was the "same old, same old" in the preferred stock market Wednesday, as market players prepared for month-end activities.

KeyCorp was a topical name, as the bank announced it bought back $2.5 billion of series B fixed-rate perpetual preferred stock sold to the Treasury in late 2008.

Though KeyCorp's preferreds were not trading overly actively, they were trading higher on the day, according to a trader.

The biggest gainer was the series A 5.88% trust preferreds, which moved up 32 cents to $24.14, with a 6.10% yield. Of the other issues, the series E 6.75% trust preferreds gained 7 cents to $25.03, while both the series D and F preferreds improved by 8 cents to $25.24 and $26.16, respectively.

The series B 6.13% preferreds were the only decliner. They lost a dime to close at $24.70.

Another trader said the 8% preferreds closed up 7 cents at $26.10, down from the intra-day high of $26.15 and the low at the open of $26.02.

Meanwhile, a new issue from Sunstone Hotel Investors Inc. was expected to be pricing soon, according to a trader. He noted that the deal is said to be small in size and that it is likely to be oversubscribed because investors are grappling at any new issues in the preferred market.

Ally Financial Inc. remained a busily traded name. However, the bank's preferreds ended the session about the same as Tuesday's closing levels.

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