Flaherty & Crumrine Preferred Securities Income Fund Inc. (FFC)

Flaherty & Crumrine Preferred Securities Income Fund offers a 6.8% yield and monthly distributions, appealing to income-focused investors. FFC's recent performance improved after the Fed's rate cut, with a 9.35% total return over the past year including distributions. FFC trades at a 5.31% discount to NAV, more attractive than its five-year average, potentially justifying accumulation at current levels.

This report screens ~400 closed-end funds (CEFs) for those with 100%+ net investment income coverage, highlighting lower risk of distribution cuts. Top lists identify CEFs with the widest discounts, most attractive z-scores, highest covered yields, and best combinations of value and income. Investors are encouraged to use these rankings as a starting point for due diligence, not as final buy or sell recommendations.

PASADENA, Calif.--(BUSINESS WIRE)--The Boards of Directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE: DFP) today announced that they have d.

FFC's yield and total return lag behind peer-preferred CEFs, in direct contradiction to the fund's popularity. The fund's yield is barely above that of the domestic preferred stock index, so it offers little premium for the higher volatility. Recent outperformance versus the index may have been driven by foreign holdings benefiting from currency moves as the U.S. dollar continues its descent.

FFC offers leveraged exposure to preferred equities, mainly financials, amplifying both upside and downside moves compared to vanilla ETFs like PFF. The fund is still undervalued relative to NAV, but discount volatility increases during risk-off events, creating tactical trading opportunities. Preferred equity prices are high and credit markets are ebullient, making the 6.8% distribution less attractive versus risk; we see more downside than upside near-term.

Flaherty & Crumrine Preferred Securities Income Fund offers a 7.3% dividend yield but is vulnerable to high interest rates, impacting its performance and NAV. FFC's portfolio is heavily concentrated in the financial sector and employs aggressive leverage, increasing risk in a high-interest-rate environment. The fund's price and NAV have declined significantly since 2022 due to rising interest rates, with future growth dependent on potential rate cuts.

PASADENA, Calif.--(BUSINESS WIRE)--The Boards of Directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE: DFP) today announced that they have d.

FFC's high leverage and reliance on short-term funding make it highly sensitive to Fed rate changes, limiting potential price gains unless rates drop significantly. The fund's strong performance in 2024 was driven by lower Fed Funds rates and a rally in bank preferred shares, showcasing effective security selection. Despite lower rates, FFC's persistent high leverage and funding profile suggest continued high discount to NAV, with significant downside risk in a risk-off event.

Preferred securities have shown strong performance in 2024, offering high yields and potential tax advantages, making them attractive for income-focused investors. Flaherty & Crumrine's CEFs, particularly DFP and FLC, provide compelling opportunities with yields around 7% and significant discounts to NAV. DFP, with a 9% five-year total return, and FLC, with a slightly higher recent return, are top picks for long-term total returns.

PASADENA, Calif.--(BUSINESS WIRE)--The Boards of Directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE: DFP) today announced that they have d.

NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns a rating of "BBB-" with Stable outlook to the 9.25% fixed rate resetting junior subordinated notes due 2064 ("Notes") issued by The Fortegra Group, Inc. (TFG) and guaranteed on a junior subordinated basis by certain subsidiaries of TFG, including Fortegra Financial Corporation (FFC). The rating on the Notes is primarily dependent on the long term issuer credit rating of FFC (KBRA Rating: BBB/Stable) as a guarantor for the Notes and the Notes' level of sub.

PASADENA, Calif.--(BUSINESS WIRE)--The Boards of Directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE: PFD), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE: PFO), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (NYSE: FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE: FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE: DFP) today announced that they have d.

“Buy bonds!” – Contrarian Outlook, 2H 2022

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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