Preferred trading muted; energy preferreds up on oil price gains; CorEnergy lists on NYSE

By Stephanie N. Rotondo

Phoenix, Feb. 2 – Preferred stocks were higher in Monday trading, and preferreds in the oil and gas sector were firming along with oil prices.

The Wells Fargo Hybrid and Preferred Securities index finished up 18 basis points. However, it did so amid limited liquidity, according to a market source.

“Volume was very, very light,” the source said. “Between New York and Boston, the weather in the past couple of hours has taken a turn for the worse.”

The source also attributed the day’s muted activity to “Super Bowl leftovers.”

Additionally, the source said the day’s strength seemed to indicate that the market was “not all that concerned about Greece.

“Whether or not it should be is a different story,” he said.

Greece’s new government is looking to ditch many of the terms put in place after the country was bailed out by its euro zone peers. Talks have been ongoing, but several countries have been slamming on the breaks.

George Osborne, chancellor of the United Kingdom, has gone so far as to say that the debt negotiations are the greatest threat to the world’s economy.

But in the oil and gas realm, preferreds were ending stronger amid rising oil prices. Prices were surging as union workers at U.S. refineries and chemical plants were striking for a second day, demanding a new national contract.

West Texas Intermediate crude gained $1.50, or 3.11%, closing at $49.74 per barrel. Brent crude ended at $54.80, up $1.80, or 3.42%.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) ended the session up 95 cents, or 4.67%, at $21.31. Goodrich Petroleum Corp.’s preferreds were meantime seen getting a nice boost as well.

The 10% series C cumulative preferreds (NYSE: GDPPC) were up $1.68, or 27.77%, at $7.73. The 9.75% series D cumulative preferreds (NYSE: GDPPD) gained $1.75, or 29.66%, trading at $7.65.

In the primary arena, a trader said he was “hoping we would get some hints of possible deals this week, but I’m not seeing anything.”

Among recently priced issues, CorEnergy Infrastructure Trust Inc.’s $50 million of 7.375% series A cumulative redeemable preferred stock hit the New York Stock Exchange Monday.

The deal came Jan. 22. The ticker symbol is “CORRPA.”

Paper was trading at $25.25 early in the session, up from par at the open.

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