#leverage-and-borrowing
#leverage-and-borrowing

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#preferred-stock-etfs #sofr-financing #credit-spreads #etf-expense-ratios

from24/7 Wall St.

Trap!? PFFA's 9.6 Percent Preferred Yield Hides Up to 33 Percent Borrowed Leverage Most Income Investors Never See

PFFA’s high distribution yield is generated by borrowing to buy more preferred shares, so returns depend on financing costs and credit conditions.

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