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Fixed-income portfolios with primarily shorter term bonds and term preferred stocks have reinvestment risk. Reinvestment risk is the risk that when your bonds mature that interest rates will be lower so you must reinvest that money at lower yields. This lowers your income. In my opinion the best fixed-income securities for safety and yield are term preferred stocks issued by closed end funds (CEFs) that invest in CLOs. » Mehr auf seekingalpha.com

We take a look at the action in preferreds and baby bonds through the third week of January and highlight some of the key themes we are watching. Preferreds were flat despite rising Treasury yields. Month-to-date, the higher-beta sectors outperformed. There are arguments on both sides when allocating between term and perpetual preferreds. » Mehr auf seekingalpha.com