Savvy preferred stock buyers, looking for a glimpse of what the future of interest rates looks like, are used to watching Fed announcements regarding the federal funds rate. While doing so was fruitful during the Greenspan Fed years, the post-QE reality faced by today's Fed requires a change in focus for preferred stock investors.
Over the next year or two, preferred stock investors looking for a leading indicator of preferred stock rates and yield should pay attention to information related to the Fed's 'Overnight Fixed-Rate Reverse Repurchase facility.' How the Fed manages this facility is likely to become very important to preferred stock investors...
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Over the next year or two, preferred stock investors looking for a leading indicator of preferred stock rates and yield should pay attention to information related to the Fed's 'Overnight Fixed-Rate Reverse Repurchase facility.' How the Fed manages this facility is likely to become very important to preferred stock investors...
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 by 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.
