Preferreds Market Weekly Review: $26 Is The New $25

Summary

  • We take a look at the action in preferreds and baby bonds through the fourth week of June and highlight some of the key themes we are watching.
  • Preferreds returns remain strong as the average price in the $25-par market has now reached $26.
  • We maintain a tripartite allocation in the sector with actively managed ETFs, pinned-to-par securities that are likely to provide moderate resilience and higher-yielding sectors like mREITs and CEFs preferreds.
  • Looking for a helping hand in the market? Members of Systematic Income get exclusive ideas and guidance to navigate any climate. Learn More »

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This article was first released to Systematic Income subscribers and free trials on 28-June.

Welcome to another installment of our Preferreds Market Weekly Review where we discuss preferreds and baby bond market activity from both the bottom-up - highlighting individual news and

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This article was written by

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Income investing across BDCs, CEFs, ETFs, preferreds, baby bonds and more.

At Systematic Income our aim is to build robust Income Portfolios with mid-to-high single digit yields and provide investors with unique Interactive Tools to cut through the wealth of different investment options across BDCs, CEFs, ETFs, mutual funds, preferred stocks and more. Join us on our Marketplace service Systematic Income.

Our background is in research and trading at several bulge-bracket global investment banks along with technical savvy which helps to round out our service. 

Disclosure: I/we have a beneficial long position in the shares of AAIC.PC, CIM.PB, NYMTN, NYMTP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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