Managers reduce exposure in preference share market

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The growing difference between the market caps of the corporate bonds and preference shares has led ...

The growing difference between the market caps of the corporate bonds and preference shares has led managers to reduce exposure to the latter Some weeks ago Dresdner RCM Global Investors announced it was proposing to change the investment objectives of its Preference Trust to increase its corporate bond weighting Paul Sheehan, manager of the fund, says: "In general, the actual preference share market is not shrinking. Earlier in the year Halifax issued a large amount of shares and I bought some of the stock because, among other reasons, it offered good yield from a company with large capi...

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