PTA Stock News & Sentiment

Since our last update, PTA's discount to NAV has widened, making it a more appealing investment for those seeking exposure to preferred and income-generating securities. The fund's recent pullback is the result of the overall greater volatility and the greater sensitivity that PTA has to interest rate changes, both long and short-term rates. PTA's investment policy has seen a change since our prior update that is effective in early 2025, but it remains to be seen how significant this might alter the fund.

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund provides investors exposure to a portfolio of preferred and other income-focused securities. PTA looks better in a lower-rate environment, and we've already seen the fund recovering meaningfully from its lows last year; total returns were helped even further by the discount narrowing. The fund provides investors with an attractive ~7.7% distribution rate and should see income coverage improve as the Fed cuts rates.

The Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund offers a 7.68% yield, higher than the major fixed-income indices, which provides substantial income for investors. Despite a 16.77% decline in share price over three years, the fund's large distributions significantly boost total returns, showing the power of high yields. The fund's cash holdings fell significantly after October of last year, suggesting that it bought into the rally in preferred stock.

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund and Flaherty & Crumrine Total Return Fund have been performing well as rates have stabalized. PTA has outperformed FLC in terms of total NAV and share price returns over the last three years thanks partly to being hedged. Both funds are leveraged and may benefit from future rate cuts, but it is FLC that could potentially see the greater rebound.

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund remains an attractive place to invest in the preferred space. The fund has experienced volatility due to leverage and exposure to convertible contingency securities, but its total NAV returns have held up well. PTA's distribution yield is 8.73%, but NII coverage is low and capital gains have not fully offset the decline in net investment income.

Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund has an 8.65% current yield, but other fixed-income closed-end funds offer higher yields. The fund's shares have outperformed the fund's portfolio in recent months, but it is still trading at a discount. The fund failed to cover its distribution in the most recent reporting period, but it appears to be overcoming this problem lately.

The Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund offers a high current yield of 9.05%, making it attractive to income-seeking investors. The fund has increased its distribution in the past year, indicating strong management and performance. The fund's leverage and exposure to interest rates pose risks, but its shares are currently undervalued, providing a margin of safety.

Cohen & Steers Tax-adv Prd Sec and Inc is recovering from the banking crisis and offers the potential for decent performance due to its valuation. The fund has hedged against rising rates using interest rate swaps. The fund's recovery has been aided by the stabilization of banks and a slower pace of interest rate increases. Investing in PTA is a bet on no more large regional bank failures and a belief that interest rates will not rise significantly beyond the two anticipated hikes.

PTA has recently released its semi-annual shareholder report and we take the opportunity to provide an update. PTA net income has fallen along with nearly all other credit CEFs. However, what GAAP income misses is the large contribution from its swap portfolio. PTA along with its sister fund LDP remains an attractive pair to rotate between, particularly for tax-sheltered investors.