Preferreds stay firm as week comes to end; RBS issues mostly higher on back of share-sale news

By Stephanie N. Rotondo

Phoenix, June 28 - Preferred stocks were still "bouncing around" on Friday, according to a trader.

"There's no real news for the push," he said, speculating that as it was quarter-end, accounts could be doing some last-minute positioning.

Another market source said that preferreds started the day "down a bunch." But the space was soon packing on gains and held in for most of the day, he said. Towards the close, there was a bit of a drift in, which resulted in a generally flat market.

Still, there was "no more free-fall, so that was good."

Royal Bank of Scotland Group plc was trading mixed early in the session following news that the U.K. government - which holds an 82% stake in the Edinburgh-based bank - was looking to appoint advisers to help begin the process of selling back RBS and Lloyds shares.

By the end of the day, most RBS issues were trading in the green.

The 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) were up 12 cents at midday at $23.47. The paper rose all the way up to $24.00 at the close, a gain of 65 cents, or 2.78%.

The 6.08% noncumulative guaranteed trust securities (NYSE: RBSPG) meantime put on a quarter, or 1.19%, finishing at $21.28.

However, the 5.75% series L noncumulative dollar preference shares (NYSE: RBSPL) dropped a dime to end at $20.22.

A trader said that Full Circle Capital Corp.'s $18.75 million of 8.25% $25-par notes due 2020 - a deal that priced Tuesday - had listed on the Nasdaq under the ticker symbol "FULLL."

The issue was trading at $24.95 at midday, up 15 cents from the open. The notes closed at par, up 20 cents.

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