Dave, I think we will see another dip in the financials. Not enough to see the preferreds get hit hard but enough that the below 10% return is not worth the risk of me holding in most cases. I expect more than 10% return on my holding and we know the preferreds have an upside limit so what do you do? Hold for a 6% yield? Higher stock price but lower yield. Not worth it for me generally.
Now I do have a couple accounts that I manage that are more (as in almost all) fixed income that I do continue to hold preferreds yielding less than 10%. Investment grade only.