This article uses market data as of Monday close.
The last few weeks have seen extreme drawdowns across various fixed-income sectors, preferreds included. And while prices remain depressed, CEF discounts have rallied all the way back to and above pre-drawdown levels. This suggests that adding risk in the preferreds market via CEFs does not have attractive risk-reward and we would either add risk via open-end funds or pursue relative value opportunities in CEFs. We take a look at the five Flaherty & Crumrine preferreds CEFs and on a relative value basis like the Total Return