Midday Commentary: Jobs, consumer data boost preferreds; Morgan Stanley deal frees to trade

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.

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 the paper.

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.

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