Preferred Securities Market Insight - Banks Boost Preferred Issuance in September

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:

September saw the Fed deliver its first rate cut of the year, pivoting toward the labor market as payrolls and revisions signaled unusual weakness and inflation remained sticky.

Preferreds outperformed again in September, supported by ETF inflows tightening credit spreads.

$12 billion of new preferred and hybrid issuance priced in September, including the first US bank preferred to come through 6% since 2022.

More than $5 billion of announced redemptions in hybrids, preferreds, and AT1s over the next month will provide a strong positive technical, with cash hitting during the earnings blackout period.