PMIP Credit Chart 1

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PMIP Credit Chart 2

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What it means for investors

With strong fundamentals and attractive starting valuations, preferreds have the potential to be a compelling alternative for equity and high yield investors – especially those looking for income. We believe active management in this sector is key to delivering value: Preferreds can embed a wide range of interest rate risks, so understanding the relationship between global banks and their local regulators is an essential part of underwriting the credit risk.