Preferreds firm following jobs report; oil and gas sector sinks; newly priced deals muted

By Stephanie N. Rotondo

Seattle, Dec. 4 – Preferred stocks were inching up early Friday, following the broader markets higher on the back of a new jobs report.

The Wells Fargo Hybrid and Preferred Securities index closed up 9 basis points. The index was up 8 bps at mid-morning.

The latest jobs report from the federal government showed the addition of 211,000 jobs, a figure that beat expectations. Hourly wages were also improving, as unemployment stayed low.

The new data seemed to insure that the Federal Reserve will move to increase interest rates when it meets later this month.

Meanwhile, “oil is tanking” and “the dollar is getting soft,” a trader said. Domestic crude oil prices were coming in after OPEC said it would maintain current production levels, despite a global oversupply of the product.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable preferred units (Nasdaq: BBEPP) fell $1.01, or 12.85%, to $6.85.

As for dealings among recently priced deals, a trader said Prospect Capital Corp.’s $150 million of 6.25% $25-par notes due 2024 were quoted at $24.70 bid, $24.75 offered at the close.

Earlier in the day, the notes were offered at $24.65.

From earlier in the week, Eagle Point Credit Co. Inc.’s $25 million of 7% $25-par unsecured notes due 2020 – a deal from Tuesday – were pegged at $24 bid early in the day.

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