HPI: This 9.7% Yielding Preferred Fund Is A Buy (Rating Upgrade)

John Hancock Preferred Income Fund is now rated a buy, trading at a 0.26% premium to NAV and offering a 9.7% yield. HPI's income-focused strategy leverages preferred securities and corporate bonds, with 59.94% investment-grade exposure and aggressive 38.64% leverage. Performance is poised to improve as interest rates decline, enhancing operating spreads and supporting higher valuations, especially with AI infrastructure-linked utilities exposure.