Top of Morning: Preferred Securities - Performance update & outlook
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Frank Sileo, Senior Fixed Income Strategist Americas, rejoins the podcast for a performance update and outlook for the preferred securities sector. We also spend time reviewing positioning considerations within the asset class and provide a “preferred securities investing 101”. H
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4 itemsTop of Morning: Preferred Securities - Performance update & outlook
Top of the Morning: Preferreds - Sector update and outlook
Top of the Morning: Preferred Securities - Performance & positioning
The desk argues that the recent upgrade of the Preferred Securities sector to Attractive reflects a significant opportunity in the market, particularly in the $25 par retail preferred subsector. Per the full note, Frank Sileo highlighted the compelling features of this sector, noting potential tactical rebounds amidst a supportive interest rate environment. The desk also emphasizes the differentiating factors between institutional and retail preferreds, suggesting traders consider both options based on sensitivity to interest rates and yield levels. The current yield of around 7.25% for retail preferreds represents an attractive entry point given their reduced duration risk compared to alternatives.