3 reasons we think preferreds are now attractive

 
Allie Quine

Allie Quine

Portfolio Specialist

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5 minute read

August 2022

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Broad fixed income markets have seen a substantial wave of repricing this year stemming from persistent inflation, interest rate volatility, and concerns around economic growth.

However, we believe there are three dynamics in the market right now that make preferreds attractive: Higher current income levels, healthy issuer fundamentals, and preferreds’ historical tendency to rebound following significant drawdowns.

ABOUT THE AUTHORS
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Allie QuineCFA, Vice President, is a member of Cohen & Steers’ Portfolio Specialist Group.

FURTHER READING

3 reasons to consider preferreds when rates are rising

September 2022 | 10 mins

Preferred securities have characteristics that can potentially help mitigate the effects of rising interest rates.

Recession or not, growth is slowing: Our macro team’s view

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Our base case calls for a shallow recession as inflation peaks and central bank policies take hold. Here’s how we’re positioned across key strategies.

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April 2022 | 12 mins

While preferreds and other fixed income groups have faced macro headwinds so far in 2022, we believe the longer-term outlook for preferreds remains intact.

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