Tag Archives: S&P U.S. Preferred Stock Index

Can Realized Volatility Predict Future Volatility for Preferred Securities?

The investment community routinely uses historical realized volatility as an indicator of future volatility. One prominent example of this is the construction of ranking-based, low volatility equity strategies where realized volatility is used to form low volatility portfolios. Can the realized volatility of an asset indicate its future volatility? We extend the low volatility analysis Read more […]

Quality and Diversification within the Preferred Stock Space

Preferred stocks are a class of stock that pays dividends at a specified rate and has a preference over common stock in the payment of dividends and the liquidation of assets. This asset class offers investors a unique place in the capital structure that is often overlooked. In addition, their relatively low correlations with traditional Read more […]

Preferences of Preferred Stock

Preferred stock is a hybrid security that has characteristics of both stocks and bonds.  In the capital structure, preferred shares are subordinate to bank loans and senior corporate bonds, but they are senior to common stock.  If a company had to file for bankruptcy and the assets of the company were liquidated, preferred shareholders would Read more […]