FPF - Time To Swap Finally To Flaherty Preferreds And Capture Relative Value?

September, 10 2021 07:00 AM First Trust Intermediate Duration Preferred & Income Fund of Beneficial Interest

The preferred stock space has been richly valued for some time as the 'other' funds join Flaherty & Crumrine ("F&C") funds in premium land.
F&C is the premier manager in the preferred stock space, across any publicly traded asset type, with a fantastic long-term track record.
The F&C funds still trade at a premium to NAV, but they haven't seen a large increase in their valuation in the last several months like the rest of the sector.
This is a relative value play and a place to pickup a nice 6.5% yield with decent credit quality in the hybrid space (grey area between stocks and bonds).
We recommend FFC and FLC as options for your portfolio but not as a swap from FPF, our Core Holding.

For further details see:

Company Name:	First Trust Intermediate Duration Preferred & Income Fund of Beneficial Interest
Stock Symbol:	FPF
Market:	NYSE