$1000 Par Preferred Trade
Income StrategyLong
$1000 par preferreds for institutions; less liquid retail access; better terms typically
Source: seekingalpha.com
$25 Par Preferred Trade
Income StrategyLong
$25 par preferreds liquid for retail; trade slightly above par at issue then discount in rate stress
Source: seekingalpha.com
Bank Preferred Trade
Income StrategyLong
Bank preferred stocks (JPM/BAC/WFC) trade premium for stability; AT1 hybrid characteristics
Source: seekingalpha.com
Below-Par Preferred Trade
Income StrategyLong
Preferreds at deep discount to par after rate spike; capital appreciation + yield
Source: seekingalpha.com
Call Risk Avoidance
Income StrategyAvoid
Preferreds trading above call price + 90 days exposed to call; avoid yield-to-call below market
Source: seekingalpha.com
Convertible Preferred Trade
Income StrategyLong
Convertible preferreds (TSLA-style mandatories Netflix); equity upside plus dividend
Source: seekingalpha.com
Cumulative vs Non-Cumulative Filter
Income StrategyLong
Cumulative preferreds carry over missed dividends; structural advantage; modest premium
Source: seekingalpha.com
Fixed-to-Float Preferred
Income StrategyLong
Fixed initial coupon; floats after first call date; protects against rates rising
Source: seekingalpha.com
Innovative Income Investor
ToolsTool
Innovative Income Investor; preferred and income deep-dive analysis
Source: seekingalpha.com
Insurance Preferred Trade
Income StrategyLong
Insurance company preferreds (MetLife AIG); senior to common in insolvency
Source: seekingalpha.com
New-Issue Preferred Discount
Income StrategyLong
New preferred issues sometimes price below par by 0.50-1.00; capture syndicate discount
Source: seekingalpha.com
Preferred Capital Structure Arb
Income StrategyArb
Preferred-vs-bond-vs-equity from same issuer; cap structure pricing inconsistencies
Source: seekingalpha.com
Preferred ETF (PFF/PGX)
Income StrategyLong
PFF/PGX/PSK preferred ETFs; diversified single-issue exposure; 5-6% yields
Source: seekingalpha.com
Preferred Mean Reversion
Income StrategyMean Rev
Preferred-to-Treasury spread mean-reverts; trade extremes
Source: seekingalpha.com
Preferred Stock Channel
ToolsTool
Preferred Stock Channel; tracks all $25 par preferreds; ex-dividend tracking
Source: seekingalpha.com
Preferred Stock Yield Strategy
Income StrategyLong
Preferred stocks (PFF iShares ETF); 5-7% yield; senior to common; junior to debt
Source: seekingalpha.com
Preferred-IG Bond Hedge
HedgingHedge
Long preferred / short IG bond; isolate preferred-vs-bond differential
Source: seekingalpha.com
Preferred-Treasury Hedge
HedgingHedge
Long preferred basket / short Treasury futures; isolate credit spread component
Source: seekingalpha.com
QDI vs Non-QDI Filter
Income StrategyLong
Qualified dividend preferreds (15-20% tax) vs interest-treated; QDI preferred for taxable accounts
Source: seekingalpha.com
QuantumOnline Preferred Database
ToolsTool
QuantumOnline free database; track every preferred listed in US; primary retail source
Source: seekingalpha.com
REIT Preferred Trade
Income StrategyLong
REIT preferreds (Public Storage Realty Income); 6-8% yield; cumulative dividends
Source: seekingalpha.com
Reset Date Preferred Arb
Income StrategyLong
Trade preferreds approaching reset date; coupon adjustment to current yields creates value
Source: seekingalpha.com
Trust Preferred (TruPS)
Income StrategyLong
Trust preferreds (TruPS) historically counted as Tier 1 capital; phased out for banks post-Dodd-Frank
Source: seekingalpha.com
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.