FYI: A buying opportunity may be shaping up in the $750 billion market of U.S. preferred shares.
This relatively obscure asset class has taken a hit during the second half of the year, with individual preferreds correcting 10% to 20%. Industry observers felt these securities—hybrids between stocks and bonds that are prized for their income—were due for a reckoning of sorts after having held up too well while the Federal Reserve raised rates over the past several years. Like all fixed-income securities, when interest rates rise, preferred prices tend to fall.
Regards,
Ted
https://www.wsj.com/articles/preferred-stocks-beckon-if-interest-rates-behave-1544411100
