Citi preferreds end mixed; Montpelier to bring new issue; Public Storage preferreds slip

By Stephanie N. Rotondo

Portland, Ore., May 2 - The first trading session of the month saw "spotty action" in the preferred stock market, a trader said.

Citigroup Inc.'s preferreds were busy, though they were trading with "no particular theme," according to a trader.

The trader saw the 6% series Q preferreds drop 16 cents to $22.49 and the 8.5% series J preferreds fall 9 cents to $26.36. The 7.875% series N preferreds, however, moved up 11 cents to $27.87.

"The Citi Ns will do better because it is the only issue that can't be called" before the Dodd-Frank regulations go into effect, the trader said.

Also in the financial realm, Ally Financial Inc.'s series A preferreds were - for once - not the most actively traded security, although they did "break out to the upside," a trader said.

In the new issue realm, Montpelier Re Holdings Ltd. said Monday it planned to sell shares of its non-cumulative series A preferred stock.

According to a market source, the deal is being "whispered" in the 9% area, "which generally means that it will price in the high 8s."

The source said 3 million preferreds are expected to be sold at par of $25 for an issue size of $75 million. However, he implied that the deal might grow if demand is there.

He quoted the paper at $24.77 bid, $24.83 offered in the gray market.

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