Infrastructure Capital Advisors' Jay Hatfield on the benefits of listed preferred stocks

Core Viewpoint - Listed preferred stocks are attractive for income-focused investors, especially in a favorable interest-rate environment that may support this asset class [1] Group 1: Investment Strategy - The fund focuses on US and North American-listed preferred securities, benefiting from tighter bid/ask spreads and easier access for investors [2] - Preference is given to securities issued by public companies that report and protect credit quality, typically having larger market caps compared to private credit markets [2] Group 2: Portfolio Management - Emphasis on credit selection, monitoring call features, and positioning across different rate regimes, including the use of floating-rate exposure when rates are rising [3] - The macro view suggests that money supply dynamics are important indicators for inflation and interest rates, with a forecast of inflation decreasing to 2% and rates dropping, creating a favorable environment for preferred stocks [3] - Higher coupons can help offset market volatility over time, although there is a key risk associated with incorrect predictions on inflation and rates [3]