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RiverNorth/DoubleLine preferreds offer high yields and discounts amid TLT recovery, presenting a low-risk income opportunity.

Market News
25 Oct 2026
Seeking Alpha
View Source
Bullish
RiverNorth/DoubleLine preferreds offer high yields and discounts amid TLT recovery, presenting a low-risk income opportunity.

The RiverNorth/DoubleLine Strategic Opportunity Fund preferred stocks (OPP-A and OPP-B) are trading below par despite strong fundamentals and investment-grade ratings. These preferreds offer attractive yields near 7.7% and are protected by a 200% asset coverage requirement, making them a low-risk, tactical fixed-income option. Their prices lag behind the recent recovery of the iShares 20+ Year Treasury Bond ETF (TLT), creating an opportunity for investors to capture alpha as spreads narrow. This combination of high income, credit quality, and discounted prices positions these preferreds as appealing for income-focused investors seeking stability and yield in the fixed-income sector.

The iShares 20+ Year Treasury Bond ETF (TLT) shows a market cap of $47.48 billion and a daily volume of 34,599,694 shares as of Oct 25, 2026, 23:11 WIB. Despite a slight 0.49% drop in price to USD 81.34, investor interest remains strong with 100% buy orders on Pluang. This active trading environment contrasts with the lagging prices of the RiverNorth/DoubleLine Strategic Opportunity Fund preferred stocks (OPP-A and OPP-B), highlighting a potential tactical opportunity in fixed income.

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