Banks intensively redeem high-yield preferred stocks, institutional asset management allocation faces the challenge of "substitutes"

In recent years, as the issuance rates of secondary capital bonds and perpetual bonds have decreased, more and more banks have chosen to redeem high-yield preferred shares. Last year, a total of 9 banks redeemed over 100 billion in preferred shares, leading to a contraction in market size. Researchers pointed out that this move is a choice for banks to optimize their capital structure and reduce financial costs