Preferred Securities Market Insight - Positioned for Another Solid Year in 2026

Our preferred securities specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for preferred investors.

Key takeaways from the latest edition:

 Constructive macro and credit backdrop: Robust earnings, mid-cycle fundamentals and anticipated Fed cuts seem to support continued preferred performance in 2026.

 Valuations remain reasonable relative to alternatives in fixed income, with institutional preferred spreads largely unchanged over the past year.

 Bank supply should stay limited, as evolving regulatory requirements temper issuance, while financial sector fundamentals remain strong heading into 2026

 Hybrid and preferred structures offer compelling relative value, allowing investors to move down the capital structure to seek incremental yield.