Preferred Stocks Offer a Better Way to Bet on Banks | Barron’s

One normally staid corner of the financial markets—preferred stock—has been rattled by the Silicon Valley Bank and Signature Bank seizures, and that has created opportunities for investors.

Preferreds are a senior form of equity whose dividends come before those of common stock. Preferred shares issued by banks, however, account for about two-thirds of the $400 billion market and the twin bank failures have highlighted the credit risk in these securities.

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