PIMCO Preferred and Capital Securities Active Exchange-Traded Fund

PRFD

Market cap $197M

PIMCO Preferred And Capital Securities Active ETF focuses on preferred securities, actively managing duration and liquidity to maximize risk-adjusted returns. The fund is heavily weighted towards financials, with 70% in Tier 1 and Tier 2 securities, offering balanced investment grade and non-investment grade bonds. PRFD outperformed PFF in 2024 due to active duration management, but current yields are low at 5.65%, making it unattractive for new entries.

We take a look at the action in preferreds and baby bonds through the second week of April and highlight some of the key themes we are watching.

We take a look at the action in preferreds and baby bonds through the fourth week of March and highlight some of the key themes we are watching. Preferreds had a good week as Treasury yields fell on the back of the Fed's more dovish than expected stance. We take a look at how stocks with different spreads over SOFR could react to Fed's cuts.

We take a look at the action in preferreds and baby bonds through the third week of March and highlight some of the key themes we are watching. Preferreds were down for the week due to rising Treasury yields, but most preferred CEF sectors remain positive for the month. Albemarle issued a new preferred stock with a mandatory convertible feature, offering upside participation with less downside than the common and a higher coupon.

We take a look at the action in preferreds and baby bonds through the fourth week of February and highlight some of the key themes we are watching. Preferreds had a strong week with a 1%+ return, driven by a drop in Treasury yields and compression in credit spreads. Different preferreds sectors have different drawdown profiles, offering investors an opportunity to tilt to more resilient securities in anticipation of the next drawdown.

PFFA is a well-diversified and consistently top-performing preferred stock ETF, enabled by management's bold allocation strategy.

We take a look at the action in preferreds and baby bonds through the second week of February and highlight some of the key themes we are watching. Preferreds were flat on the week as higher Treasury yields were offset by tighter credit spreads. A high yield-to-call is not a sufficient reason to buy a given preferred.

We take a look at the action in preferreds and baby bonds through the fourth week of January and highlight some of the key themes we are watching. Preferred stock and baby bond market had a good week with most sectors finishing in the green. The article discusses the curious case of Aspen insurer preferred AHL.PR.C and how the coupon conversion worked on the first call date.