Midday Commentary: Fed meeting mutes preferred activity; Wells Fargo above par; Fifth Third lists

By Stephanie N. Rotondo

Phoenix, Dec. 17 - Preferred stocks were softening Tuesday ahead of the Federal Reserve's meeting.

A trader said investors were waiting to see if the central bank would give some sort of direction on how the economy is doing before "getting ahead of that train." Additionally, he noted that the federal government was moving toward passing a recently announced budget.

"That could give some stability to the market," he said.

The Wells Fargo Hybrid and Preferred Securities index was trading down 8 basis points as of midday.

Meanwhile, Wells Fargo & Co.'s $750 million of 6.625% series R class A fixed-to-floating rate noncumulative preferreds - a deal that came Wednesday - was seen at $25.08 bid, $25.15 offered.

Among other recent deals, Fifth Third Bancorp's $450 million of 6.625% series I fixed-to-floating rate noncumulative preferreds listed on the Nasdaq Global Select Market, according to a trader.

The deal priced Dec. 4. The ticker symbol is "FITBI."

Paper was trading down 15 cents at midday at $24.55.

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