Dunvegan

Shot on Goal: An ETF Warren Buffett and Wayne Gretzky Might Like

Banks use prefs to raise capital in the market subject to limitations imposed by Basel capital adequacy requirements, thats why it is heavilly skewed towards financials. The prefs are normally issued with a defined yield. If a bank defaults on its pref div payments it usually means its gone bankrupt - which up until recently, was considered remote! Prefs are used quite extensively in South Africa as a tax effective way to earn an income, as dividends are not taxed in the hands of the investor.