Midday Commentary: Morgan Stanley greenshoe exercised in full; CHS admitted to Nasdaq, trades up

By Stephanie N. Rotondo

Phoenix, Sept. 27 - Preferred stocks were finishing the week on the softer side, as the Wells Fargo Hybrid and Preferred Securities index dipped 15 basis points by midday.

A trader said Morgan Stanley & Co. Inc.'s $750 million of 7.125% series E fixed-to-floating rate noncumulative preferreds were greenshoed early in the day, adding $112.5 million to the total issuance.

He quoted the issue at $25.25 bid, $25.30 offered.

The deal priced Tuesday.

Meanwhile, CHS Inc.'s $250 million issue of series 1 class B cumulative redeemable preferreds - a deal that came Sept. 12 - listed on the Nasdaq under the ticker symbol "CHSCO." A trader said once the deal listed, "it immediately went to a $28.50 premium."

However, the paper backed off a little but was still up on the day. As of midday, the shares were up $1.09, or 4.12%, at $27.55.

Overall, the trader said trading had quieted down as the week was coming to a close.

"I think everybody has made their positions for next week," he said, noting that Monday was both month- and quarter-end. He opined that investors might play the waiting game as the government debates whether or not to raise the debt ceiling.

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