Midday Commentary: U.S. names most active despite euro zone news; week starts on off note

By Andrea Heisinger

New York, June 25 - Despite news out of the euro zone, U.S. names dominated the preferred stock market in trading during the first half of Monday.

A trader said that the top seven or eight most-active issues in the secondary were from names including Bank of America Corp., which was No. 1, and a 6.125% series P sale done in April by PNC Financial Services Group, Inc.

"We're clearly off on the day, about 10 basis points, or 2 to 3 cents," the trader said. The levels were from Friday's close, he added.

Banco Santander SA's series E preferred shares were seeing the most trading among European financial names, but they were still eighth on the list of most actives.

A series B preferred from Countrywide was also among the most actives. "People are speculating they could call it out of the market," the source said.

Of the top 15 issues seen active in trading, nearly all were flat or up on the day.

"It's a Monday, and right now it feels like August," the source said, referring to the summer slowdown. "The only reason volume is so high is because of all of the calls."

The U.S. Department of the Treasury announced that it will sell preferred stock bought from seven banks through the Capital Purchase Program as part of its effort to wind down the Troubled Asset Relief Program.

They will be sold through Dutch auctions that began Monday, according to a press release.

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