PMT - Preferreds Weekly Review: Will Bond Issuance Lead To Preferreds Redemptions

2024-05-25 20:00:00 ET

Summary

• We take a look at the action in preferreds and baby bonds through the third week of May and highlight some of the key themes we are watching.
• Preferred stocks had a good week as longer-term Treasury yields fell.
• Companies are issuing bonds for reasons other than redeeming preferreds, such as taking advantage of cheap issuance and topping up leverage.
• PMT preferreds are happily avoiding the switch to a floating-rate profile. Where are the lawsuits?

Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving markets or that investors ought to be mindful of. This update covers the period through the third week of May....

For further details see: