Preferred Securities Regain Appeal Amid Volatility and Yield Shifts

This CIO Weekly Commentary from Nuveen, led by Chief Investment Officer Saira Malik, evaluates portfolio strategies in light of geopolitical tension, sticky inflation trends, and evolving credit market dynamics.

• Market volatility driven by Middle East conflict and persistent tariff uncertainty supports balanced allocations with defensive yield exposure.

• Preferred securities, particularly $1000 par and CoCos, delivered strong May returns and may offer attractive risk-adjusted income with tax benefits and shorter duration.

• Moderating inflation and resilient economic sentiment support expectations for two Fed rate cuts in 2025, reinforcing demand for income-generating assets.

Explore the full commentary for actionable insights on navigating risk and enhancing income in today’s complex macro landscape.