2024-03-15 11:15:00 ET
Summary
- Preferred securities prices were hit hard during the rate hiking cycle, leading to valuations not seen since the Global Financial Crisis and creating an attractive entry point for income-oriented investors.
- Given their long-dated maturities, and even perpetual nature, preferreds are highly sensitive to changing interest rates and bond yields.
- PFXF offers investors access to the U.S.-listed preferred securities market that excludes securities issued by financials, which many might find particularly attractive given the current banking concerns.
Preferred securities are trading at attractive discounts, however, just as many are looking to manage their Mag 7 exposure, we believe the same risk management applies to preferreds as well. ...
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Preferreds Look Attractive, But Mind The Financials