- We take a look at the action in preferreds and baby bonds through the last week of March and highlight some of the key themes we are watching.
- Preferreds joined the broader recovery this week across the income space, pushing March returns into the green.
- Issuers, particularly those in the CEF sector, have increasingly turned to the institutional market to issue new preferreds - an unfortunate but understandable outcome for retail investors.
- We discuss the price action in OZKAP - an example that combines a number of key market trends this year.
- Higher long-end rates remain a key risk - we prefer to tilt to higher-coupon preferreds as well as those with high reset yields.
For further details see:
Preferreds Market Weekly Review: Turn To Institutional Preferreds Issuance Limits Retail Options