Reach your investment-grade income goals with preferred and capital securities.

We have seen massive monetary and fiscal stimulus from central banks and governments. Given this backdrop, preferred and junior subordinated capital securities offer unique value given their income characteristics and attractive spreads to treasuries.

We expect investors to continue to search for yield and consequently go down the capital structure in strong companies by buying preferred and capital securities.

Consider Preferred and Capital Securities

  • A conservative, risk managed approach to subordinated fixed income and CoCos with attractive yields1

  • Broadly diversified with more than 200 securities worldwide

  • High quality portfolio: 80% investment grade at security level, 100% investment grade at issuer's senior debt level

  • Managed by Spectrum Asset Management which has a long track record of managing preferred and capital securities since 1987

  • CoCo exposure limited to 30%

Quarterly update: Audio commentary

A quick update from Matthew Byer, Chief Operating Officer, Spectrum Asset Management.

An overview of our Preferred and Capital Securities strategy

In these short videos, Matt Byer, Chief Operating Officer at Spectrum Asset Management gives a brief overview of preferred and capital securities, including where value and yield come from and why now.

About Spectrum

Spectrum Asset Management is a world-leading manager of preferred and capital securities. Founded in 1987, Spectrum has over 30 years of experience in managing preferred and capital securities across varied market conditions including periods of rising and falling interest rates, improving and declining credit cycles, and global regulatory change.

Spectrum has a historical track record of consistent performance achieved by implementing its fundamental credit-based investment philosophy, leveraging its expertise in capital structure analysis, and employing and retaining its experienced team of investment professionals. Their global perspective, deep knowledge, and extensive experience uniquely position the firm to assist investors seeking the income, total return, and diversification potential offered by a professionally managed portfolio of preferred securities.

Citation

1 CoCos represent contingent convertible bonds.
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