One of the most attractive fixed-income investments introduced over the past two years is the preferred security. Developed in the early 1990s, preferred securities offer investors the opportunity to maintain good liquidity in portfolios and earn a higher income than they would if they invested in comparable corporate bonds and preferred stocks.
The securities, often known as TOPRs, MIPs, QUIPs and Trust Preferreds, are commonly purchased by individual investors who seek an affordable fixed-income investment to enhance their income stream without sacrificing credit quality. Preferred securities can offer these benefits because they possess the features of both corporate bonds and preferred stock.
The best of both worlds
Like corporate bonds, preferred securities offer the following benefits:
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info