Morning Commentary: Morgan Stanley on tap; American Equity weaker; Qwest notes gain

By James McCandless

San Antonio, Nov. 18 – The preferred space began the week modestly positive with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.03%.

Kicking off the week’s primary activity, Morgan Stanley announced plans to price an offering of $25-par series L non-cumulative preferred stock at par.

Morgan Stanley & Co. LLC is the bookrunner.

The preferreds are redeemable on or after Jan. 15, 2025. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Leading in the secondary, the company’s established 6.625% series G non-cumulative preferred stock was under pressure.

The preferreds (NYSE: MSPrG) were down 12 cents to $25.33 on volume of about 219,000 shares.

The company intends to redeem the series G preferreds with proceeds from the new offering.

Elsewhere in the finance space, CIT Group, Inc.’s 5.625% series B non-cumulative preferred stock began the morning rising.

The preferreds (NYSE: CITPrB) were adding 5 cents to $25.22 with about 117,000 shares trading.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds took a negative track.

The preferreds (NYSE: COFPrI) were losing 8 cents to $24.82 on volume of about 102,000 shares.

Meanwhile, annuities provider American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferred stock started the session weaker.

The preferreds, trading under the temporary symbol “AQYVL,” were off by 1 cent to $25.49 with about 213,000 shares trading.

In communications, Qwest Corp.’s 6.5% notes due 2056 were gaining in Monday morning activity.

The notes (NYSE: CTBB) were improving by 4 cents to $25.48 on volume of about 20,000 notes.

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