Tag - active management

Advice to the Advisors

Sheaff Brock Institutional Group | "cheat sheet" on Preferred Stock

Preferred Stock 301+

(As an advisor, you’re in the know, but perhaps your clients can use a 101+ quick “cheat sheet” on Preferred Stock). Then, keep reading for some more advanced insights … By issuing preferred stock, a company combines the characteristics of both debt and equity. Advantages to the issuing company include: Issuing preferred stock as opposed to bonds keeps the company’s debt-to-equity ratio lower, a situation favored by investors. Ratings agencies tend to give a more favorable analysis for preferreds as [...]

Advice to the Advisors

On Paddle Board | Active Management of Preferred Stocks | Sheaff Brock Institutional Group

Elements of Active Management of a Preferred Portfolio

No question as to which side of the ongoing debate about the merits and shortcomings of active vs. passive management is exemplified in the Sheaff Brock Preferred Income portfolio—it’s run using an actively managed strategy, and there are reasons why. With the two-part goal of generating income while preserving capital, Senior Portfolio Manager JR Humphreys utilizes both institutional and retail preferred shares. So, how can advisors set about explaining to clients the distinction between active management and a passive approach? Passive [...]