Destra Insights

Even though interest rates have risen significantly off their all-time lows in 2020, they remain historically low and investors continue to search for yield wherever they can. As a result, preferred market sectors with higher yield have tended to outperform over the past year.

Here in mid-December 2021, we anxiously await the Fed’s announcement on the direction of interest rates and whether they will speed up their efforts to end the bond buying that the Fed has been conducting since early 2020. All of this, in response to inflation that is proving to be much more than transitory. This is spurring a lot of talk about where the stock market goes from here. But there is seemingly much more agreement on where the bond market goes, in the face of rising rates ------ down!

Log jams and bottlenecks may impact what’s under your Christmas tree this year. And some worry that could be negative for the economy and markets. But for every action there is a reaction and for every situation there is an investment opportunity.

We all know how annoying telemarketing calls can be and frankly, many of us just don’t like being called. Well, there is an analogy to that in the investing world, with income securities like preferreds, most of which have provisions that allow them to be called after a certain date at the issuers discretion.