it’s a different world since Covid. the crowd can push stocks to greater and greater spreads from fundamental reality than ever before. Even the dot com wasn’t this bad.
Matt Levine talked about this in his column at Bloomberg back in March: https://tinyurl.com/250318BBLevine This is a gift link. A Bloomberg subscription is not required. The link expires on July 9, 2025.
PFF is not the benchmark for Convertible Preferreds. ICVT is the ETF you want to compare it to. I believe PFF is principally Financial Preferreds but not necessarily Convertibles. Since rates have been rising from late September 2024 PFF has gone down a lot but ICVT actual has gone higher since it is really equity disguised as debt. PFF -7.5% ICVT +8.5% So a 16% performance differential.