Jobs, consumer data lift preferreds; market down from day's high; Morgan Stanley frees up

By Stephanie N. Rotondo

Phoenix, Dec. 6 - Preferred stocks were ticking up Friday as new jobs data and consumer sentiment numbers were better than expected.

The Wells Fargo Hybrid and Preferred Securities index was up 26 basis points at mid-morning but came back to close up only 12 bps by the end of the day.

Still, overall trading was not overly active, even in newly priced deals.

A trader said he hadn't seen too much of Morgan Stanley & Co. Inc.'s $850 million of 6.875% series F fixed-to-floating rate noncumulative preferred stock.

The deal priced Thursday and freed up early Friday morning, the trader noted.

"It's still around par," he said, seeing a $24.92 offer for paper.

He later saw the issue being quoted at $24.94 bid, $24.97 offered.

Another market source said the preferreds were inching even closer to par, quoting the securities at $24.90 bid, par offered.

Fifth Third Bancorp's $450 million of 6.625% series I fixed-to-floating rate noncumulative perpetual preferreds - a deal that came Wednesday and freed on Thursday - were meantime pegged at $25.02 offered.

However, by late afternoon, the issue had come in some, with a trader seeing a market in a $24.99 to $25.01 context.

Yet another market source said the paper ended the day with a par trade, though he noted that the volume weighted average price was $24.97.

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