Floating Preferreds Have Monstrous Yields Due To Timing Phenomenon

Floating rate preferreds are subject to a phenomenon of timing, which is makes them interesting yield plays and potentially opportunistic. Many of these issues were created in a very different environment, and now that the environment has shifted, they are yielding somewhere around 10%. A yield that was never intended, but is available today due to the timing phenomenon. The Timing Phenomenon Many preferred issues were incepted around 4 to 7 years ago during the zero interest rate period. At that time, they ...