Even with the significant jump in preferred stock market prices that we have seen throughout the third quarter, the U.S. preferred stock market is still offering 25 investment grade preferred stocks that are available below their $25 par value.
Those two criteria -- rating and market price -- are usually among the most important when risk-averse preferred stock buyers are considering a new purchase. Even though the credibility of the rating agencies took a major hit during the Global Credit Crisis, investors still use these ratings as a proxy for investment risk. Preferred stocks that have investment grade ratings generally command a higher market price than otherwise equivalent issues with speculative grade ratings.
Here is the Preferred Stock Market Snapshot(TM) chart illustrating how the U.S. preferred stock market distributed its offerings across these two key criteria as we wrap up the third quarter of 2012...
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Those two criteria -- rating and market price -- are usually among the most important when risk-averse preferred stock buyers are considering a new purchase. Even though the credibility of the rating agencies took a major hit during the Global Credit Crisis, investors still use these ratings as a proxy for investment risk. Preferred stocks that have investment grade ratings generally command a higher market price than otherwise equivalent issues with speculative grade ratings.
Here is the Preferred Stock Market Snapshot(TM) chart illustrating how the U.S. preferred stock market distributed its offerings across these two key criteria as we wrap up the third quarter of 2012...
Note To Readers: This article was chosen to appear on the popular investing website 'Seeking Alpha'.
By clicking here a new window/tab will open on your screen to this article as it appears at SeekingAlpha.com.
Receive my Seeking Alpha articles by email: When viewing one of my articles at Seeking Alpha, click on the "Follow" button under my picture. You will be notified by email when I post a new article to Seeking Alpha.
Please enjoy reading this article at Seeking Alpha.
Many Happy Returns.
