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Ignore the Banking Risk With Preferred Stocks

It’s beginning to feel a lot like 2008/2009 in more ways than one – and one of the biggest ways remains the stresses in the financial sector. Thanks to the Fed’s moves to tighten its monetary policy, falling asset prices and worried depositors, many regional banks have come under pressure. We’ve seen bank runs, the collapse of several institutions as well as a few midnight/weekend rescues. Ultimately, there’s a lot of risk in the banking sector these days.

But there also could be rewards as well.

While you could argue that the larger regional bank stocks are now bargains, there are different and perhaps safer ways to play the banks. Bank-preferred stocks now offer tantalizing yields, higher placement in the capital stack and overall less risk than equity.

Be sure to check our Portfolio Management Channel to learn more about different portfolio rebalancing strategies.

A Very Quick Downturn

A Potential Play

Why Buy Today?

Adding Some Bank-Preferred Stock