Preferreds erase early gains, soften ahead of holiday; Maiden hits NYSE; RBS shares slip

By Stephanie N. Rotondo

Phoenix, Nov. 27 - The preferred stock market was posting modest gains in early Wednesday trading, though overall liquidity was thinning out due to Thursday's Thanksgiving holiday. Later, the market give up those gains.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points in early trading, but toward the end of the day it was giving up those gains and trading off 7 bps.

Maiden Holdings North America Ltd.'s $152.5 million of 7.75% senior notes due 2043 were admitted to the New York Stock Exchange on Wednesday, as was expected.

The deal priced Nov. 18. The ticker symbol is "MHNC."

Paper was trading at $24.42 at mid-morning, which compared to opening levels of $24.45. Just ahead of the closing bell, the issue was trading at $24.51 but then closed at $24.43.

Meanwhile, Royal Bank of Scotland Group plc was weaker amid allegations the bailed out U.K.-based bank had purposefully forced small businesses into bankruptcy only to then buy up assets at bargain prices.

The 6.08% noncumulative guaranteed trust preferred securities (NYSE: RBSPG) were off 4 cents at $21.66. After being down most of the day, the 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) erased its earlier losses to close up 9 cents at $24.76.

RBS has claimed there is no evidence to back up the allegations, but it is conducting an investigation.

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