VNORP - Preferreds Market Weekly Review: A Welcome Flurry Of Reset Issuance

• We take a look at the action in preferreds and baby bonds through the third week of September and highlight some of the key themes we are watching.
• The preferreds market has seen a significant step down in returns despite a supportive macro backdrop due to tight credit spreads, low risk-free rates, and negative convexity.
• CMT reset-rate preferreds have increased in frequency - we discuss why it's worth holding some of these fix-to-float securities in income portfolios.
• Market activity has woken up - we highlight redemptions and new series from Huntington, Vornado, New Residential, and more.

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