Morning Commentary: Morgan Stanley’s new issue hits par; Invesco preferreds admitted to NYSE

By Stephanie N. Rotondo

Phoenix, Sept. 12 – The preferred stock market was soft as the week came to a close.

The Wells Fargo Hybrid and Preferred Securities index was down 28 basis points at mid-morning.

Morgan Stanley & Co. Inc.’s newly priced $1 billion issue of 6.375% series I fixed-to-floating rate noncumulative preferreds hit par in early Friday trading.

A trader quoted the new deal at par bid, $25.05 offered.

The preferreds priced Thursday and freed to trade shortly thereafter, the trader said.

Morgan Stanley & Co. LLC ran the books.

The issue begins to float on Oct. 15, 2024 at Libor plus 370.8 basis points.

Meanwhile, Vanguard Natural Resources LLC’s $100 million of 7.75% series C cumulative redeemable perpetual preferred units – a deal that came Wednesday – was assigned a temporary reporting symbol on Friday, according to a trader.

The symbol is “VNRTP.” The trader saw the issue trading around $24.70.

Invesco Mortgage Capital Inc.’s $150 million of 7.75% series B fixed-to-floating rate cumulative redeemable preferreds meantime began trading on the New York Stock Exchange under the ticker symbol “IVRPB.”

Paper was trading at $24.89 at mid-morning, up from opening levels of $24.78.

The deal priced Sept. 4.

The primary market was expected to continue to be busy next week.

“We still have a full calendar coming next week as well,” a trader said.

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