What Are Preferred Shares?

Preferred shares are interesting because they fall into the category of performing well during rising interest rate environments. Unlike bonds they don't have maturity dates they just trade indefinitely kind of like bond ETFs. There is liquidity risk with preferred shares that often isn't present with common stock and it's better to look at it as a longer term investment.

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IN THIS EPISODE, YOU’LL LEARN:

02:16 - The benefits of including bonds into a portfolio.
06:03 - The risks that bonds are subject to: interest rate risk, inflation risk, credit risk, liquidity risk.
19:45 - What the term structure is, and why a normal yield curve is upward sloping.
20:27 - A deep dive into the different types of bonds investors can buy.
22:25 - Where investors can purchase different types of bonds.
29:31 - What I Savings Bonds are and the benefits they offer in this environment.
42:53 - What preferred shares are, and examples of different types of preferred shares.
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Money Crashers.
Series I Savings Bonds- What They Are and How to Buy Them.
What Is an Exchange-Traded Note (ETN)?
What Is a Corporate Bond and How Do They Work?
Related Episode: Tax-Advantaged Investing w/ Brian Martucci – MI220.

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