Preferreds Weekly Review: New Preferred From Strategy

Jun. 29, 2025 11:47 PM ETSTRD, STRF, STRK1 Comment

Summary

  • We take a look at the action in preferreds and baby bonds through the third week of June and highlight some of the key themes we are watching.
  • Preferreds delivered solid performance in April, with credit spreads tightening but yields rising due to higher Treasury rates.
  • Strategy (formerly MicroStrategy) issued a 10% non-cumulative preferred; main risks are BTC price volatility and asset coverage mechanics, not cash flow.
  • Michael Saylor may issue more preferreds or buy back common shares, both actions could reduce asset coverage and increase risk for preferred holders.
  • I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try to add

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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