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PFD: Banking Sector Exposure Could Be A Risk For This Preferred Stock Fund

The Flaherty & Crumrine Preferred and Income Fund offers an 8.03% yield, with a portfolio heavily concentrated in preferreds and contingent capital securities. PFD's banking sector exposure exceeds 50%, raising risk as rising bond yields drive unrealized losses and pressure preferred prices. Recent performance has lagged the preferred index, with a 10.4% share price decline and distributions insufficient to offset losses over the period.

PFD: Banking Sector Exposure Could Be A Risk For This Preferred Stock Fund

The Flaherty & Crumrine Preferred and Income Fund offers an 8.03% yield, with a portfolio heavily concentrated in preferreds and contingent capital securities. PFD's banking sector exposure exceeds 50%, raising risk as rising bond yields drive unrealized losses and pressure preferred prices. Recent performance has lagged the preferred index, with a 10.4% share price decline and distributions insufficient to offset losses over the period.

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