UBS Wealth Management Research (WMR) publishes reports that provide a strategic assessment of relative value in the preferred market, as well as individual security investment opinions and market updates. This is accomplished by taking a credit-centric approach that first evaluates in Credit Sector reports the fundamental credit risk of frequent preferred issuers, and also incorporates other factors that can impact their trading, including tax laws, government regulations and macroeconomic conditions. The Preferred Security Valuation Report provides an indication of the risk/reward trade-off involved with owning specific preferred securities, which should help in building fixed-income portfolios for investors of varying risk tolerance.

In addition, WMR compiles a database of outstanding preferred securities and catalogs the market according to the type of preferred security, level of subordination, tax treatment and country of origin. Similar to other asset classes, educational commentary on basic financial concepts, issues, thoughts and studies are also examined for the preferred securities market.

Preferred securities are subject to market value fluctuations, given changes in the level of interest rates. For example, if interest rates rise, the value of these securities could decline. If preferred securities are sold prior to maturity, price and yield may vary. Adverse changes in the credit quality of the issuer may negatively affect the market value of the securities. Most preferred securities may be redeemed at par after five years. If this occurs, holders of the securities may be faced with a reinvestment decision at lower future rates. Preferred stocks are also subject to other risks, including illiquidity and certain special redemption provisions.