Morning Commentary: Preferreds remain soft despite positive economic data; MetLife stays busy

By Stephanie N. Rotondo

Phoenix, June 3 – Though fresh economic data came in “right on target,” according to a trader, the preferred stock market was weak early Wednesday.

“The long bond is getting crushed,” the trader noted, as the market waits to see if E.U. leaders could get a deal done for Greece. The trader remarked that the parties are “too far in” to back away now.

As for the new data, ADP said that 201,000 payrolls were added in May, pointing to strength in the economy. Later in the day, the Federal Reserve will release its Beige Book, which should also give an idea of how the economy is faring.

But even with the positive data, the Wells Fargo Hybrid and Preferred Securities index was down 11 basis points at mid-morning.

MetLife Inc.’s 6.5% series B noncumulative preferreds (NYSE: METPB) continued to be active in secondary trading, as nearly 300,000 shares had traded by mid-morning.

The paper was even ticking up a touch, trading at $25.04.

The preferreds have been active since the company announced a tender and a call of the issue on Monday.

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