Preferred stocks rebound; Gladstone frees to trade; Costamare slips; Morgan Stanley active

By Stephanie N. Rotondo

Phoenix, May 8 – The preferred stock market ended the week with a stronger tone following a jobs number that was “not disappointing,” a trader said Friday.

The Wells Fargo Hybrid and Preferred Securities index closed 68 basis points better. The index was up 61 bps at mid-morning.

New data showed nonfarm payrolls increasing by 223,000 in April. Though that was less than the 224,000 additions Reuters had estimated, the market appeared pleased with the figure.

Additionally, unemployment fell to 5.4% from 5.5%, pushing that market indicator closer to a level the Federal Reserve considers full employment.

Among new issues, a trader said Gladstone Investment Corp.’s $35 million of 6.5% series C cumulative term preferreds due 2022 had freed from the syndicate.

He quoted the issue at $24.75 bid, par offered.

Meanwhile, Costamare Inc.’s $100 million of 8.75% series D cumulative redeemable preferreds – another deal from Wednesday – were seen at $24.65 bid, $24.72 offered.

Another source placed the issue at $24.65, down 10 cents from the previous close.

The issue was assigned a temporary reporting symbol of “COZTF.”

Separately, Morgan Stanley & Co. Inc.’s recently called issues – the 6.6% capital VII and VI securities – remained active in Friday trading, though the shares finished the session mixed.

The capital VII (NYSE: MSZ) securities ended a penny higher at $25.11. The capital VI (NYSE: MSJ) securities slipped a similar amount to $25.09.

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