Likely the Preferred Way to Play Preferreds Right Now
March 24, 2020 at 08:00 AM EDT
With bond yields tumbling, it would be easy to think that these would be go-go days for preferred stocks and the related ETFs. That’s not the case because many traditional preferred ETFs allocate substantial portions of their rosters to preferreds issued by financial services, which are seeing net interest margins depressed by the Federal Reserve’s assault on interest rates.