Preferreds Weekly Review: Shifting Rate Expectations Scramble Relative Value
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The preferreds and baby bonds market saw declines due to rising Treasury yields, but yields in the sector have become more attractive at around 6.8%. Expectations for rate cuts have decreased, affecting the relative value of various preferred securities.
January 20, 2025 | 1:15 am
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NEUTRAL IMPACT
NYMT, which may have exposure to preferred securities, could be impacted by the decline in preferreds due to rising Treasury yields. However, the more attractive yield of 6.8% could offer some support.
NYMT is potentially impacted by the broader decline in preferreds due to rising Treasury yields. However, the increased yield attractiveness could mitigate negative impacts, leading to a neutral short-term outlook.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50