Midday Commentary: Preferreds stay firm; Five Oaks planning add-on; BreitBurn units climb higher

By Stephanie N. Rotondo

Phoenix, May 21 - The midweek session started strong for the preferred stock market.

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

Still, a trader said it was "horribly quiet," further opining that the remaining trading days would be worse as desks operated with a "skeleton crew" ahead of the Memorial Day holiday.

Five Oaks Investment Corp. said Wednesday that it was reopening its 8.75% series A cumulative redeemable preferreds.

The company originally sold $20 million of the preferreds in December.

The paper (NYSE: OAKSPA) was trading down 46 cents, or 1.79%, to $24.99 in early trading.

In the add-on offering, Keefe Bruyette & Woods Inc. is acting as the bookrunner. BTIG LLC, Ladenburg Thalmann & Co. Inc. and Mitsubishi UFJ Securities (USA) Inc. are the co-managers.

Meanwhile, BreitBurn Energy Partners LP's 8.25% series A cumulative redeemable preferred units continued to move higher, according to a trader.

The trader saw the issue trading in a par to $25.10 range.

The deal, which came May 14, could list next week, the trader speculated.

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