New Year, New Markets: The Case for Preferred Securities February 17, 2021
As markets continue to process results of the 2020 election and its potential impact on regulation and policy, one thing is certain: the zero rate environment isn’t likely to go away anytime soon. As yield-starved investors face dwindling opportunities in bonds, financial professionals need to find more attractive income-generating opportunities with acceptable levels of risk.
In the upcoming webcast,
New Year, New Markets: The Case for Preferred Securities, Mark Lieb, Founder, President and Chief Executive Officer, Spectrum Asset Management; Jessica Bush, Portfolio Manager, Principal Global Asset Allocation; and Matthew Cohen, Head of Principal ETF Specialist Team, Principal Global Investors, will outline the benefits of including preferred securities in income-focused portfolios.
January 26, 2021
Bond yields are still low, meaning traditional income-generating assets just aren’t cutting it for many investors. Enter preferred stocks and the actively managed
PREF can act as a portfolio diversification tool and reducer of correlations. Another advantage of PREF’s active management is that the managers can look for value in an asset class that has been expensive for much of this year.
Preferred stocks are a type of hybrid security that show bond- and equity-like characteristics. The shares are issued by financial institutions, utilities, and telecom companies, among others. Within the securities hierarchy, preferreds are senior to common stocks but junior to corporate bonds. Additionally, preferred stocks issue dividends on a regular basis, but investors don’t usually enjoy capital appreciation on par with common shares.
Principal on Trends in Portfolio Construction Amid 2020 Volatility December 24, 2020
ETF Trends CEO Tom Lydon spoke with Ed Nini, Global Head of Product Strategy for Principal Global Investors, about the tumultuous year that has been 2020 and what kinds of strategies have been put into place with various advisors to account for it. Specifically, Lydon wanted to hear from Nini about the trends in portfolio construction, given the current state of the market.
Throughout the year, the market has seen dramatic shakeups from all over, including a downturn for some of the standard money-making sectors and the rise of tech and thematic-based ETFs, based on trends that have taken hold. As far as emerging trends are concerned, Nini speaks to how the uncertainty of 2020 has not stalled the migration of assets to lower-cost passive vehicles.
December 22, 2020
On Monday, popular brokerage app Robinhood, which has risen to notoriety among younger, tech-savvy investors this year, said it will no longer offer some favored income-generating asset classes starting next month.
“Robinhood said that after Jan. 11, 2021, customers can no longer buy closed-end funds, limited partnerships, master limited partnerships (MLPs), royalty trusts, tracking stocks, New York registry shares, and units,” reports Avi Salzman for
In today’s low-yield climate, investors shouldn’t be locked out of accessing preferreds. The
Robinhood Aside, PREF Still Matters
Preferred stocks, including those residing in PREF, are hybrid securities due to their combined debt and equity attributes. The securities are senior to common equity and junior to senior debt in the capital structure. They are issued by financial institutions, energy companies, utilities, and telecom companies, among others. Additionally, preferred stocks issue dividends reg