Preferreds erase early losses, end firm to start month; Bank of America, Wells Fargo list

By Stephanie N. Rotondo

Seattle, Feb. 1 – The preferred stock market started out the new month with a weaker tone amid weak economic data from China and renewed declines in oil prices but ultimately clawed its way back to end in the black.

The Wells Fargo Hybrid and Preferred Securities index closed up 17 basis points. The index was off 10 bps at mid-morning.

A new report showed that manufacturing in China contracted at the highest rate in the last four years.

Separately, oil and gas-linked preferreds were waning.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) fell $1.16, or 15.61%, to $6.27. Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) meantime dropped $1.13, or 18.9%, to $4.85.

Elsewhere, recently priced issues from Bank of America Corp. and Wells Fargo & Co. began trading on the New York Stock Exchange on Monday.

Bank of America’s $1 billion of 6.2% series CC non-cumulative perpetual preferred stock began trading under the ticker “BACPC.” Wells Fargo’s $875 million issue of 5.7% series W class A noncumulative perpetual preferred stock then listed under the symbol “WFCPW.”

The Bank of America paper ended at $25.43, which compared to $25.30 at the open. The Wells Fargo issue closed at $25.33, versus $25.27 at the open.

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