preferred stocks

Annaly Capital Management Inc. (NYSE: NLY) is one of the major mortgage real estate investment trusts (REITs), but it’s the company’s floating-rate preferred shares (NYSE: NLY-PF) that seem to be attracting investors’ attention.  These bondlike instruments make regular...

There are over 10,000 different securities from 100 countries that trade on the three tiers of OTC Markets.  We use the term “security” as a catch-all because it can refer to a variety of financial instruments. Even though all these instruments give investors some amount of...

Should General Motors Company (NYSE: GM) split its stock? According to David Einhorn-founded hedge fund Greenlight Capital in a recent presentation, there's a case for two classes of GM shares to unlock value. The Problem And The Solution The firm's contention was GM stock trades at a...

Traders are increasingly reconciling the fact that the Federal Reserve will raise interest rates in December. That speculation is prompting some pressure on rate-sensitive asset classes, as highlighted by recent retrenchments in real estate and utilities stocks and exchange-traded funds. Preferred...

Preferred stocks and exchange-traded funds are benefiting this year from the Federal Reserve's refusal to raise interest rates, something the U.S. central bank recently passed on. Like other high-yielding asset classes, preferred stocks and the corresponding ETFs are viewed as negatively...

Among the high-yielding asset classes benefiting from the Federal Reserve holding off on raising interest rates to this point in the year are preferred stocks and the corresponding exchange-traded funds. TheiShares S&P US Pref Stock Idx Fnd (ETF) (NYSE: PFF) has a 30-day SEC yield of 5.3...

Well-documented is the fact that preferred stocks and the corresponding exchange-traded funds are among the beneficiaries of the Federal Reserve's lower for longer interest rate policy. It is also well-known that higher yielding asset classes, including preferred stocks, are seen as vulnerable...

In part 1 of this article, we discussed the importance of liquidity and premium/discount for preferred stocks. In this second part, we will discuss the different types of preferred stocks, and their ties to interest rates. 3) Types of preferred stocks Generally, there are three types of preferred...