Preferreds slump following earlier gains; oil names lower; Fannie, Freddie down

By Aleesia Forni

New York, Jan. 13 – Preferred stocks ended lower on Wednesday after the market was showing signs of improvement earlier during the session.

The Wells Fargo Hybrid and Preferred Securities index was down 6 basis points after being up 4 bps at mid-morning.

Oil and gas preferred paper was lower late Wednesday, as crude gave up earlier gains and slipped briefly below $30 per barrel for the first time since 2004.

Prices saw highs earlier on Wednesday following positive trade data out of China, but U.S. government data showing high inventories of oil and refined products sparked fears about demand.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) fell 35 cents to $4.14.

Legacy Reserves LP’s 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) fell 49 cents to $3.74.

Elsewhere, Fannie Mae and Freddie Mac preferreds were down at the session’s close.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were off 16 cents at $3.09, and Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) fell 14 cents to $3.10.

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