Preferreds get a boost, then fade on Syria news; Aegon, Barclays among most traded names

By Christine Van Dusen

Atlanta, Aug. 26 - The preferred stock market on Monday morning was in fairly good shape as easing concerns about the Federal Reserve's bond-buying program improved sentiment.

But the market dipped a bit after secretary of state John Kerry said there was no doubt that chemical weapons had been used in Syria.

"It was up about 52 basis points at about noon and then slowly faded after Kerry spoke," a market source said. "It still ended up, but not by as much."

Yields on 10-year Treasuries ticked a little bit lower on Monday morning to 2.798% and stocks, in general, fared slightly better than on Friday.

"The overall secondary market is positive, mildly," a trader said.

In trading on Monday morning, Aegon NV's 7.25% perpetual capital securities (NYSE: AEF) were the most active, quoted at $25.23, up 2 cents from Friday's close.

The Dutch insurance company's 6.375% perpetual capital securities (NYSE: AEH) also saw some action early in the session, trading at $23.70, up 27 cents.

And Aegon's 6 7/8% perpetual capital securities (NYSE: AEV) were spotted up 10 cents on Monday morning, trading at $24.38.

But overall, trading activity was minimal, the market source said.

"It was one of the lower activity level days," he said, noting "very little volume in the markets. It's clearly the summer doldrums. As far as I know, there has been no new issue activity. The smart people are going to wait until next week."

Barclays ticks up

Later in the session, Barclays Bank plc's 8 1/8% non-cumulative callable dollar preference shares (NYSE: BCS-PD) were up 4 cents at $25.73.

HSBC Holdings plc's 6.36% non-cumulative preferred stock was up 19 cents at $27.055 with trading volume totaling about 296,000.

"We've finally stopped seeing the massive outflows from preferreds," a trader said.

At the end of the day, MetLife Inc.'s 6½% non-cumulative preferred stock (NYSE: MET-PB) was spotted at $24.94, flat to Friday.

Deutsche Bank climbs

Most names fluctuated only slightly during trading on Monday.

"It's been bouncing in a fairly narrow range," a market source said. "There's not a lot going on."

In what little trading that did take place, Deutsche Bank Contingent Capital Trust III's 7.6% trust preferred securities (NYSE: DTK) managed to move up 10 cents to $26.40.

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