While Governance factors tend to be consistent across sectors, the Environment and Social factors vary. Managing analyst Raquel McLean discusses what special issues they look at for preferred securities.
ABOUT THE AUTHORS
Raquel McLean, CFA Vice President, is a portfolio manager for fixed income and preferred securities portfolios and has analyst coverage responsibilities for global insurance companies and Asian banks.
FURTHER READING
4 Reasons to own preferred securities today
We believe an exceptional buying opportunity for preferred securities may exist today, for several reasons: 1. Current discounts to par value represent uncommon value 2. High-quality preferreds offer some of the highest yields in fixed income 3. Performance historically has been strong following market corrections 4. An end of Fed rate hikes is a possible catalyst for price appreciation
Preferred securities: Resetting for a new cycle
Recent bank turbulence and the end of the Fed’s rate-hiking cycle create what we believe may be an exceptional buying opportunity for preferreds.
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