Jeremy Hellman

Preferred Dividend ETFs: Shelter from the Storm?

First, preferred shares do show up on the balance sheet...normally the first entry in shareholder's equity. But I digress...I was long PGF but the problem the preferreds all face right now is the ballooning corporate bond spreads. If you as an investor can 'trade up' the capital structure without giving up yield, then it sure makes sense to do so. Thus, preferreds are likely to see more selling right now.