Bank of America, Wells Fargo report quarterly results; Breitburn Energy cuts distribution

By Stephanie N. Rotondo

Seattle, April 14 – The preferred stock market was slightly higher in Thursday trading as Bank of America Corp. and Wells Fargo & Co. released their latest quarterly results.

The Wells Fargo Hybrid and Preferred Securities index firmed by 8 basis points. The index was up 2 bps at mid-morning.

“Activity improved over yesterday,” a market source said, “but not by a lot.”

Both BofA and Wells Fargo narrowly beat expectations, though overall, results were down year over year. Both banks also saw an increase in credit loss provisions, due mainly to exposure to the energy space.

Away from earnings, Breitburn Energy Partners LP was deemed an “interesting story” by a source after the company announced that it was suspending distributions on its 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP), as well as on its 8% series B perpetual convertible units. The oil and gas MLP also noted that it would defer interest payments on its 7 7/8% notes due 2022 and 8 5/8% notes due 2020.

The news sent the series A units into a nosedive, making it the day’s biggest percentage loser.

Fannie Mae and Freddie Mac preferreds continued to be on the active side ahead of oral arguments at the U.S. Court of Appeals on Friday.

A source said the preferreds were “looking a little more mixed.”

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