- We take a look at the action in preferreds and baby bonds through the third week of September and highlight some of the key themes we are watching.
- The preferreds market has seen a significant step down in returns despite a supportive macro backdrop due to tight credit spreads, low risk-free rates, and negative convexity.
- CMT reset-rate preferreds have increased in frequency - we discuss why it's worth holding some of these fix-to-float securities in income portfolios.
- Market activity has woken up - we highlight redemptions and new series from Huntington, Vornado, New Residential, and more.
For further details see:
Preferreds Market Weekly Review: A Welcome Flurry Of Reset Issuance