Fixed-Rate Reset Preferred Stock

Fixed-rate reset preferred stock is preferred stock whose fixed rate resets periodically using a benchmark plus a contractual spread.

Why this matters to income investors

Reset terms determine whether income rises or falls at each reset date.

How to use fixed-rate reset preferred stock in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.