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Strategies & Market Trends : Preferred Stock Investing

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To: Kapusta Kid who wrote (182)1/14/2013 1:19:22 PM
From: deenoRead Replies (1) of 189
 
"Have these floaters simply gotten ahead of themselves "

the world is chasing yield.

"or is the market telling me something ?"

what do you think its saying?

"Will this trend continue? "

Its all about yield. rates have been dropping since about 1982. Fed says on hold till 2015. One, do you beleive them? two, do you really think they can control rates?

"with most fixed-rate preferreds trading above par, are income seekers piling into floaters in anticipation of higher distributions which will be some time in coming ?
"

or they are thinking rates will be low for a long time and that PFd's they own will get called. A good number of floaters have a floor that won't drop more.
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