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What are Preferred Shares? Companies raise capital primarily through common equity offerings (stocks) and debt offerings (bonds). Preferred share offerings, however, provide companies with another source of financing with characteristics of both equity and debt. Similar to stocks, preferred shares represent ownership in a company, with coupons like that of bonds. Where Do They Rank […]

When evaluating an investment fund or certain securities, the distribution yield is a metric for investors seeking to understand the return potential they can expect from their investment. It provides insight into the cash generating potential of a fund, including its dividends, interest income, and other distributions. In this article, we will explain what the

What are Distributions? When you invest in certain funds, whether it’s a mutual fund, exchange-traded fund (ETF), pooled fund, or another type of collective investment vehicle, you may encounter the term “distributions.” These distributions represent the cash that a fund returns to its investors from the earnings generated by the underlying assets. Distributions can be

The yield curve is a fundamental aspect of bond and fixed income investing. It offers a snapshot of future interest rate expectations and economic conditions. Its shape and movements can signal shifts in monetary policy and investor sentiment, making it an essential tool for both policymakers and investors. What is the Yield Curve? The yield

One question we get asked is, “Why is the coupon on this bond so low compared to the current interest rate environment?” This is typically due to bonds being purchased at a discount. Discount bonds offer similar returns to other bonds but with potential tax advantages. What are Discount Bonds? Discount bonds are debt instruments