HOVVB - Preferreds Weekly Review: Yield Differential Between Bonds And Preferreds Often Too Tight
2024-03-10 11:15:06 ET
Summary
- Preferreds were slightly lower this week and over February, with caution required for stocks trading above "par".
- The fixed-income version of the "beta anomaly" shows that the yield differential between bonds and preferreds may be too low.
- We highlight recent issuances from HOV and MITT.
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 the 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 first week of March....
Preferreds Weekly Review: Yield Differential Between Bonds And Preferreds Often Too Tight