Morning Commentary: Preferreds rise with oil prices; energy sector improves; Hancock notes firm

By Stephanie N. Rotondo

Phoenix, March 23 – The preferred stock market was trending higher in early Monday trading, helped in part by modestly higher oil prices.

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

The gain in the commodity in turn gave the energy sector a boost.

Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) were up 31 cents, or 1.45%, in mid-morning trades at $21.71. Goodyear Petroleum Corp.’s 9.75% series D cumulative preferreds (NYSE: GDPPD) were meantime up 16 cents, or 2.05%, at $7.96.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) were also firm, rising 31 cents, or 1.46%, to $21.53.

Meanwhile, a trader said Hancock Financial Co.’s $150 million of 5.95% $25-par notes due 2045 – a deal from March 2 – had “moved back up,” pegging the issue at $24.50 bid, $24.75 offered.

That issue has yet to list, the trader noted.

As for the new issue calendar, the trader said he was “hearing something might come today,” though he had yet to see any announcements.

“It’s probably not a big name then,” he remarked.

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