Time To Shine For CMT Preferreds

The Fed's recent hawkish pivot sharply increased interest rates, negatively impacting most income sectors.

CMT preferreds emerge as a compelling sub-sector, offering potential protection against rising long-term rates.

Screening CMT preferreds by reset yield and yield-to-call can help identify attractive opportunities.

In Kevin Warsh's first press conference in June, the Fed shocked markets and made a hawkish pivot, pushing up interest rates across the yield curve.

This development was received badly by most income sectors.