PTA: Worry About Inflation, Not The Problems In Private Credit

Power HedgeInvesting Group LeaderFollow5ShareSavePlay(34min)CommentsSummaryThe Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund (PTA) offers an 8.40% yield, primarily investing in preferred stocks with significant banking sector exposure. PTA trades at a 7.29% discount to NAV, aligning with its historical average and appearing reasonably priced relative to peers. Distribution coverage relies on both net investment income and realized gains; recent NAV decline suggests potential sustainability concerns if market conditions worsen. Rising inflation and lower preferred stock yields may challenge PTA's ability to preserve real wealth, especially if inflation outpaces the fund's yield. Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More » Chong Kee Siong/E+ via Getty Images The Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund (PTA) is a closed-end fund that income-focused investors may choose to purchase as a means of earning a high level of currentThis article was written byPower Hedge16.11K FollowersFollowPower Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields. He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.