RNP - Lock In 8% Preferred Bargains Before The Fed Cuts Rates
2024-05-17 08:30:00 ET
Summary
- Dealmaking in Corporate America is strong, and older preferreds are being redeemed in billions.
- To fill the void, credit-worthy firms are issuing new preferreds sporting high yields amidst elevated interest rates.
- Join us in making hay when the sun shines, with 8% yields.
Co-authored with Hidden Opportunities
Interest rates are the talk of the town, and higher interest rates are intended to slow down the economy. But that doesn't mean the economy is frozen. We are seeing fewer but larger deals, and established companies are driving growth inorganically by acquiring smaller players. According to McKinsey's latest M&A trends report , the U.S. market saw a 38% jump in the average deal size to $670 million per deal in 2023. Even the highest-quality borrowers have to borrow to grow and stay competitive....
Lock In 8% Preferred Bargains, Before The Fed Cuts Rates