Articles on preferred stocks and baby bonds.

How the securities are built, how they are priced and how to hold them. Written for investors buying $25 securities on an exchange.

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Asset class · Jul 20, 2026

Cumulative vs. non-cumulative preferred stocks

One clause in the prospectus decides whether a missed dividend must eventually be paid or is lost for good. It costs little in normal times and matters a great deal when an issuer runs into trouble.

YieldDesk · 3 min

Asset class · Jul 20, 2026

Preferred stocks vs. common stocks vs. bonds

Five dimensions (claims on cash flow, priority on assets, participation in upside, maturity and taxation) determine where common stock, preferred stock and bonds each belong in a portfolio. The familiar "hybrid" label captures none of them.

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YieldDesk · 3 min

Asset class · Jul 20, 2026

Baby bonds explained: structure, risks and rewards

At $25 par and traded on an exchange like a stock, baby bonds are genuine debt with a stated maturity and contractual interest, ranking senior to preferred stock from the very same issuers.

YieldDesk · 4 min

Asset class · Jul 20, 2026

What are preferred stocks? A beginner's guide

A $25 par value, a fixed dividend, and a claim ranking above common stock but below all debt define preferred stock, an instrument that pays like a bond and absorbs losses like equity.

YieldDesk · 4 min