Oil price gains boost energy sector preferreds; Hancock notes firm; HSBC active, higher

By Stephanie N. Rotondo

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

The Wells Fargo Hybrid and Preferred Securities index ended up 19 basis points, after being up 8 bps at mid-morning.

For their part, West Texas Intermediate crude rose 76 cents, or 1.63%, to $47.33 a barrel for May delivery. Brent crude meantime gained 57 cents, or 1.03%, to close at $55.89.

The gain in the commodity in turn gave the energy sector a boost, at least initially.

Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) firmed up 48 cents, or 2.24%, to $21.88. The units were up 31 cents, or 1.45%, in mid-morning trades at $21.71.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) then erased all of its early gains, closing off 11 cents at $21.11.

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.

And HSBC Holdings plc’s 8% exchangeable perpetual subordinated capital securities (NYSE: HSEB) ended the day higher after the London-based bank announced plans for a contingent convertible issue.

The securities closed up 3 cents at $26.26.

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