Infrastructure Capital Advisors' Jay Hatfield on the benefits of listed preferred stocks

Infrastructure Capital Advisors CIO Jay Hatfield talked with Proactive's Stephen Gunnion about why listed preferred stocks can be attractive for income-focused investors, and how the current interest-rate backdrop may support the asset class. Hatfield explained that, in his view, preferreds tend to benefit during central bank cutting cycles, because investors can capture both coupon income and potential price appreciation back toward par. He outlined the fund’s focus on US and North American-listed preferred securities, noting that being exchange-listed can mean tighter bid/ask spreads and easier access for investors. Hatfield also contrasted public issuers with private credit markets, saying the company prefers securities issued by public companies that report, protect credit quality, and typically have larger market caps. Hatfield discussed portfolio construction and risk management, emphasising credit selection, monitoring call features, and positioning across rate regimes (including using floating-rate exposure when rates are rising). He also shared his macro view, arguing that money supply dynamics can be an important signal for inflation and rates, and said: “We are forecasting inflation goes down to 2%. Rates drop… That’s a great environment for preferred.” He added that the key risk is being wrong on inflation and rates, but highlighted how higher coupons can help offset market volatility over time. For more interviews and market insights, visit Proactive’s YouTube channel—and don’t forget to like, subscribe, and turn on notifications so you never miss an update. #PreferredStocks #IncomeInvesting #Yield #ETFs #FixedIncome #RateCuts #InterestRates #Inflation #CentralBanks #PortfolioIncome #TotalReturn #CreditRisk #ActiveManagement #PrivateCredit #Markets #Investing #DividendIncome #UCITS #AssetAllocation #ProactiveInvestors