Morning Commentary: Pennsylvania REIT lists; Morgan Stanley still slipping; Just Energy lackluster

By Stephanie N. Rotondo

Seattle, Feb. 1 – The preferred stock market was mostly flat in early midweek trading, and a trader said there was “a lot of talk” about a possible Dodd-Frank repeal.

The issue started to come into focus on Monday, when the new president said that he aimed to do a “big number” on the legislation, deeming it a “disaster” that has inhibited small business growth.

The trader said he had heard that there was a bill circulating that would “allow banks to do what they were doing” ahead of the financial crisis, but added that “it looks like it is going to die on the floor.”

With only a few days left in the week, a trader said the primary could see a new issue on Thursday, though he wasn’t sure from whom.

Among recent deals, Pennsylvania Real Estate Investment Trust’s $172.5 million of 7.2% series C cumulative redeemable preferreds began trading on the New York Stock Exchange on Wednesday.

The ticker is “PEIPrC.”

The paper was seen at $25.11 at mid-morning.

The deal priced Jan. 18.

Meanwhile, a trader saw Morgan Stanley & Co. Inc.’s $1 billion of 5.85% series K fixed-to-floating rate noncumulative preferreds at $25.22.

Another source placed the issue at $25.12, down from $25.22 at the open but unchanged from the previous day.

That deal came Jan. 24.

From Monday’s business, Just Energy Group Inc.’s $100 million of 8.5% series A fixed-to-floating rate cumulative redeemable preferreds had yet to gain any traction, according to a trader.

The trader said the preferreds were offered at $24.55.

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