Morning Commentary: Preferred stocks strengthen in early trading; oil’s gain lifts sector

By Stephanie N. Rotondo

Seattle, April 8 – The preferred stock market was looking to recoup the previous day’s losses in early Friday trading.

“Everything is slightly greener,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index was up 32 basis points at mid-morning.

Meanwhile, a more than 5% surge in oil prices again led energy-linked preferreds higher. Domestic crude was gaining on hopes a production freeze deal would be inked at a meeting of oil producers in Doha on April 17.

Also helping the commodity rise was fresh economic data that suggested U.S. stockpiles were declining.

Legacy Reserves LP’s 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) were up 58 cents, or 23.76%, in early trading, at $3.00. The 8% series A fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYP) were up 37 cents, or 14.27%, at $2.96.

In Vanguard Natural Resources LLC units, the 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) were 27 cents, or 10.85%, better at $2.8045, while the 7.875% series A cumulative redeemable preferred units (Nasdaq: VNRAP) had improved 18 cents, or 4.96%, to $3.81.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) were up by 25 cents, or 4.4%, at $5.85.

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