Treasury yields have retreated, and that's good news for one kind of income asset – preferred securities, according to UBS.
US10Y YTD line U.S. 10-year Treasury yield in 2023 This month has offered some relief as the 10-year Treasury yield slipped back below 4.5%.
"Indeed, a dramatic rate pullback in the early days of November has already sparked a sharp rebound in preferreds," Sileo said.
"Callable in July 2028, this fixed-for-life perpetual pays a high 7.375% fixed coupon and offers an attractive [yield to call/current yield]."
Investors can receive an attractive yield on a high-quality crossover credit, recently upgraded by S & P following the acquisition by Brookfield [Infrastructure]."
Persons:
preferreds, Frank Sileo, US10Y, Sileo, Callable, Michael Bloom
Organizations:
UBS, Americas, Treasury, Moody's Investors Service, Allstate, Triton International, Triton, Brookfield
Locations:
preferreds, Infrastructure