Midday Commentary: Fifth Third plans deal; preferreds mixed in trading; Wachovia stands out

By Christine Van Dusen and Aleesia Forni

Atlanta, Nov. 18 - The preferred stock market on Monday was mostly quiet as Fifth Third Bancorp sought to price subordinated notes due 2024 to repurchase trust preferred securities.

The Cincinnati-based financial services company has mandated Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC for the deal, according to a 424B3 filed with the Securities and Exchange Commission.

In trading of preferreds on Monday morning, Wachovia Preferred Funding Corp.'s 7¼% non-cumulative exchange preferred securities A (NYSE: WNA-P) were among the busiest, quoted at $25.41, unchanged on volume totaling 471,078.

Countrywide Capital V's 7% capital securities (NYSE: CFC-PB) were also active during the early part of the session, up 3 cents at $25.04 on volume totaling 48,696.

And Morgan Stanley Capital Trust III's 6¼% capital securities (NYSE: MWR) traded at $23.89, down 10 cents on 45,193 shares.

"Not too much going on," a trader said. "It's mixed. Things ran up so strongly, and now the Dow is over 16,000, so people are getting a little nervous. But I'm not really seeing people clamoring to get out of things."

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