Fixed income generic banner

The Case for Preferred Securities

August 23, 2023

Preferred securities are a large and growing asset class that can offer valuable benefits for investors and issuers alike. Regulatory changes implemented following the global financial crisis helped increase the size and fundamental strength of this market. However, investing in preferreds comes with many inefficiencies. It takes the skill of an active manager to take advantage of these to deliver optimal outcomes for investors.

In this whitepaper, we explore how these hybrid securities can offer high after-tax income and portfolio diversification for investors. You’ll learn:

  • How preferreds are issued, diversified, and rated
  • How preferred yields and historical returns compare with alternatives in fixed income
  • How a customized separately managed account can enhance the efficiency of preferreds
Kevin  Lynyak photo

Kevin Lynyak

Managing Director

More about this author
James Benadum photo

James Benadum, CFA

Director, Portfolio Manager

More about this author

More to explore

Whitepaper Read more
Tag icon
Fixed income, Wealth manager, Institutional investor