Flaherty & Crumrine Preferred Securities Income Fund (FFC) Stock

The Flaherty & Crumrine Preferred Securities Income Fund has delivered a strong performance recently as various market participants became excited about rate cuts. The FFC fund's current 6.96% yield is lower than some peers, but it has been coming up recently. The fund's recent distribution increases could drive share price gains, even if preferred stock prices remain stable.

Flaherty & Crumrine Preferred and Income Securities Fund holds a portfolio of bank and insurance preferred equities, with financials representing the highest risk. FFC has a high leverage ratio of 39% with a cost of debt over 6%, which has been a drag on performance. The fund's performance is highly dependent on the direction of interest rates, and it is expected to underperform in a high rates environment.

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Flaherty & Crumrine Preferred and Income Securities Fund has suffered losses over the past two years due to high leverage and cuts in distribution. The fund's yield is not attractive compared to its peers, including the iShares Preferred and Income Securities ETF. The fund has been underperforming its peers, despite its recent run-up. This suggests that investors interested in preferred stocks may be better off elsewhere.

Flaherty & Crumrine Preferred and Income Securities Fund yields 7.41%, lower than other preferred stock closed-end funds. The fund has experienced a recent price surge due to market expectations of the Federal Reserve cutting interest rates. The fund's performance has been lackluster but has outperformed the S&P 500 Index over the past two months.

Flaherty & Crumrine Preferred and Income Securities Fund offers a high level of income with a 7.35% yield, higher than most other options in the market. The fund's shares have declined 19.11% over the past year, underperforming domestic indices. The fund's leverage and allocation to the banking sector may pose risks, but it is trading at an 11.75% discount to its net asset value.

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