Preferred Securities Market Insight - “Cockroaches” Show Up in the Credit Market’s Darkest Corners

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:

Bank earnings remained a bright spot, with large-cap banks posting strong fee income, higher net interest margins and improved credit quality.

 The Fed cut rates 25 bps and announced the end of quantitative tightening effective Dec. 1, a technical step to avoid reserve scarcity. 

Investment-grade supply stayed heavy at $150 billion, pressuring spreads marginally wider even as equity markets hit new highs and earnings beat expectations. ¹

 Preferred performance was flat overall, with $1,000 par preferreds outperforming $25 par as ETF flows remained positive.

¹ Source: Creditsights as of 10/31/2025