Morning Commentary: Preferreds tick up despite oil, Greece fears; oil and gas sector mixed

By Stephanie N. Rotondo

Phoenix, Jan. 6 – Preferred stocks were edging slightly higher in early Tuesday trading as oil prices continued to soften.

One trader also noted that the “[Treasury] bond market was up because of oil,” as well as “fears of Greece leaving the euro.”

“Everybody’s focused on oil,” he remarked.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at mid-morning.

As for oil prices, West Texas Intermediate crude was drifting further downward into sub-$50 territory, while Brent crude was inching closer to the $50-mark.

Oil and gas preferreds, however, were mixed early in the session.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) got a boost after the company said Monday it had slashed its common stock dividend, according to a trader.

The units were up 25 cents, or 1.21%, at mid-morning, trading at $20.84.

Goodrich Petroleum Corp.’s 10% series C cumulative preferreds (NYSE: GDPPC) were also moving up early in the day, putting on 24 cents, or 2.58%, to trade around $9.55.

But Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) were off 3 cents at $19.76.

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