Expert Luis Pazos: Preferred shares - stock market instrument for option writers & bond investors
Stock market expert Luis Pazos comments on preferred shares as an underestimated investment that is not only interesting for options traders and bond buyers. This mezzanine capital is almost entirely unknown to German stock market participants, which Luis Pazos aims to change with his book "Investing in Preferred Shares: Building a Defensive Income Portfolio with Exchange-Traded Hybrid Capital.".
00:00:00 Welcome
00:00:37 How did Luis come up with the topic of preferred shares?
00:01:25 What are preferred shares?
00:03:10 They're not preference shares, but they're not really participation certificates either
00:03:38 25 Dollar and preferred shares
00:06:20 Fixed dividend with preferred shares
00:07:03 Bond vs. preferred shares for issuers
00:09:30 Recognize details on the ticker/name of the preferred share
00:10:18 Advantages for the investor
00:14:30 CALL DATE and the 25$ for preferred shares
00:17:00 Practical example of how low the price can go with Warren Buffett
00:18:40 How high can the price go from beyond 25$?
00:20:00 Equity investment vs. preferred shares
00:22:30 Preferred shares for writers in the options business
00:24:50 How to find preferred shares?
00:26:35 Credit rating for preferred shares
00:28:10 Volume and sale of preferred shares
00:29:20 Book by Luis Pazos and more tips on preferred shares
00:30:45 Farewell & Risk Disclaimer
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