2024-05-01 12:57:14 ET
Summary
- Flaherty & Crumrine Preferred and Income Opportunity Fund (PFO) is currently trading at a historically wide discount and provides exposure to preferred securities.
- The fund has adjusted its distribution in response to changes in interest rates, which had resulted in several distribution cuts over the last couple of years.
- PFO would work best in a lower-rate environment, but the latest payout increase shows signs of stabilization, and the significant discount makes it an appealing opportunity.
Written by Nick Ackerman, co-produced by Stanford Chemist.
At one time, Flaherty & Crumrine Preferred and Income Opportunity Fund ( PFO ) enjoyed trading at a premium to its net asset value per share for most of its life. Over the last couple of years, the environment has completely changed, and with higher rates and a few bank failures came some skepticism. That's helped to push this fund into the double-digit discount territory, a level that it really hadn't seen since the Global Financial Crisis and before that, one would have to go back to 2000....
Read the full article on Seeking Alpha
For further details see:
PFO: Deeply Discounted Preferred Exposure