As the more seasoned preferred stock investors know when interest rates rise the preferred that are knocked down the most are the high quality, low coupon, perpetual issues.
We always watch the Public Storage (NYSE:PSA) preferred for hints at direction movement and the size of those moves in quality issues. PSA has 13 preferreds outstanding with coupons ranging from a low of 4.90% to 6.375%.
Here is a chart of the PSA-D issue which carries a 4.95% coupon showing a 5 day loss of 3%. This is exactly why many investors stay away from these low coupon issues at this stage of the interest rate cycle.