recommended preferreds - wells fargo advisors...recommended preferreds summary ... list, in and of...

Advice & Research Patrick McCluskey, Senior Fixed Income Analyst

Michael White, Taxable Fixed Income Analyst Eric M. Jasso, CFA, Taxable Fixed Income Analyst

June 10, 2020

Recommended Preferreds Summary

• Our Recommended Preferreds List consists of issuers that Advice & Research believes represent an attractive risk/reward profile for new investment.

• The client risk suitability scale described on page 12 provides guidance for what types of portfolios we believe a particular issuer would be most appropriate.

• We recommend that any investor considering a security from the Recommended Preferreds List do so as a portion of a well-diversified portfolio with no undue concentration in a specific issuer or sector. In our view, no single company should represent more than 5% of a fixed-income portfolio.

• Wells Fargo Investment Institute (WFII) currently holds a favorable opinion on Preferred Securities based on the belief that the recent market sell-off created pockets of value for higher quality preferreds. However, WFII notes that solid credit analysis is key as market volatility and the risk of a sustained downturn for some issuers remains. WFII currently holds a neutral opinion on duration (a measure of interest-rate sensitivity) given the low-yield environment and potential for additional economic uncertainty.

Methodology The Advice & Research Recommended Preferreds List uses a combination of quantitative screening coupled with a qualitative analysis to identify issuers for inclusion. The initial quantitative screening is done in order to identify issuers that meet certain minimum criteria in terms of valuation and credit characteristics. These criteria include valuation metrics such as option adjusted spread and credit default swap levels, market based information including performance of a company’s securities, as well as financial strength measures. Once an issuer is identified as having met certain numerical criteria, an analyst then reviews it for possible inclusion on the Recommended Preferreds List. This qualitative analysis utilizes information received from various resources including, but not limited to, research from affiliated and unaffiliated research correspondents. Current issuers on the Recommended Preferreds List are monitored in the same manner for continued inclusion or deletion.

What Does A Deletion Mean? Removal of an issuer from the Advice & Research Recommended Preferreds List is an indication that the Wells Fargo Advisors Fixed Income Analyst team no longer views the issuer’s securities as attractive for purchase on a risk/reward basis. That decision could be due to either a change in market valuation or deterioration in the issuer’s credit profile. When we remove an issuer from the Advice & Research Recommended Preferreds List, coverage will be reduced and review will be changed from ongoing to periodic. Removal of an issuer from the Recommended Preferreds List, in and of itself, does not connote a sell recommendation. We would also suggest at that time a Financial Advisor review with their clients the security as well as its place in a particular portfolio.

Please see pages 14-15 of this report for Important Disclosures, Disclaimers and Analyst Certification

Recommended Preferreds June 10, 2020

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Advice & Research Preferred Securities Recommendations

Please see securities highlights beginning on page 4

Security Characteristics Ratings Outlook Tax Considerations

Issuer Symbol Price^ Coupon Current

Yield Yield to Worst

Cumulative/Non-Cumulative - Bond Seniority

Moody's Rating

S&P Rating

Moody's Outlook

S&P Outlook

NRA Eligible**

Qualified dividend income

Dividend received

deduction

Group 1: Tax Advantaged Securities Blank

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AT&T INC T.A $25.72 5.00% 4.86% 4.48% CUMULATIVE Ba1 BB+ STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

BANK OF AMERICA CORP BAC.B $27.35 6.00% 5.48% 2.83% NON-CUMULATIVE Baa3 BBB- STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

BANK OF AMERICA CORP BAC.M $25.96 5.38% 5.20% 4.42% NON-CUMULATIVE Baa3 BBB- STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

DUKE ENERGY CORP DUK.A $27.43 5.75% 5.22% 3.20% CUMULATIVE Baa3 BBB STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

JPMORGAN CHASE & CO JPM.C $28.02 6.00% 5.37% 2.68% NON-CUMULATIVE Baa2 BBB- STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

KEYCORP KEY.K $25.72 5.63% 5.47% 4.93% NON-CUMULATIVE Baa3 BB+ STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

SPIRE INC SR.A $27.28 5.90% 5.41% 3.65% CUMULATIVE Ba1 BBB STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

US BANCORP USB.P $27.26 5.50% 5.06% 3.04% NON-CUMULATIVE A3 BBB STABLE STABLE No Yes Yes Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

WEBSTER FINANCIAL CORP WBS.F $26.11 5.25% 5.03% 3.72% NON-CUMULATIVE Baa3 BB STABLE STABLE No Yes Yes

^Prices not live * Rating under review ** NRA = Non-Resident Alien Accounts Sources: Bloomberg Please see page 13 for rating agency definitions


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Security Characteristics Ratings Outlook Tax Considerations

Issuer Symbol Price^ Coupon Current

Yield Yield to Worst

Cumulative/Non-Cumulative - Bond Seniority

Moody's Rating

S&P Rating

Moody's Outlook

S&P Outlook

NRA Eligible**

Qualified dividend income

Dividend received

deduction

Group 2: Debt and Other Securities

AT&T INC TBB $26.59 5.35% 5.02% 2.84% Sr Unsecured Baa2 BBB STABLE STABLE Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

AT&T INC TBC $27.28 5.63% 5.15% 2.79% Sr Unsecured Baa2 BBB STABLE STABLE Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

CMS ENERGY CORP CMSC $27.32 5.88% 5.40% 3.32% Jr Subordinated Baa2 BBB- STABLE STABLE Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

CMS ENERGY CORP CMSD $26.93 5.88% 5.46% 3.74% Jr Subordinated Baa2 BBB- STABLE STABLE Yes No No

Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

DUKE ENERGY CORP DUKB $27.66 5.63% 5.07% 2.66% Jr Subordinated Baa2 BBB STABLE STABLE Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

NEXTERA ENERGY CAPITAL NEE.N $27.55 5.65% 5.13% 3.00% Jr Subordinated Baa2 BBB STABLE STABLE Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

RENAISSANCERE HOLDINGS L RNR.F $26.17 5.75% 5.48% 4.18% Preferred Baa2 BBB STABLE STABLE Yes Yes No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

SOUTHERN CO SOJB $25.85 5.25% 5.07% 3.38% Jr Subordinated Baa3 BBB STABLE NEG Yes No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

BERKLEY (WR) CORPORATION WRB.F $24.82 5.10% 5.15% 5.23% Subordinated - BBB- STABLE STABLE Yes No No

Group 3: REITs (Real Estate Investment Trusts)

PUBLIC STORAGE PSA.H $27.82 5.60% 5.04% 2.74% CUMULATIVE A3 BBB+ STABLE STABLE No No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

PS BUSINESS PARKS INC PSB.X $25.73 5.25% 5.13% 4.45% CUMULATIVE Baa2 BBB STABLE STABLE No No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

SPIRIT REALTY CAPITAL IN SRC.A $25.43 6.00% 5.85% 6.02% CUMULATIVE Ba1 BB+ STABLE STABLE No No No Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell Blank cell

Fixed-to Floating Rate Securities

None at this time.

^Prices not live * Rating under review ** NRA = Non-Resident Alien Accounts Sources: Bloomberg Please see page 13 for rating agency definitions


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Offerings listed may not be appropriate for all investors. Please see pages 11-12 of this report for more information regarding extraordinary call features and portfolio suitability scale.

Group 1: Tax Advantaged Securities - Dividends paid are eligible for treatment as qualified dividend income (QDI) for U.S. individuals and the dividends received deduction (DRD) for qualifying U.S. corporations. Not suitable for non-resident alien (NRA) accounts.

COMPANY TICKER PORTFOLIO SUITABILITY

AT&T Inc. T.A 3

5.00% Cumulative Perpetual Preferred Aggressive Income

Callable on/after 12/12/2024

Extraordinary Call: Rating Agency Event A national provider of telecommunication services including wire-line and wireless phone service, internet access, television programming and security services. company expanded into the production and distribution of media and entertainment content with the acquisition of Time Warner Inc.

Bank of America Corp. BAC.B 2

6.00% Non-cumulative Perpetual Preferred Moderate Income


Extraordinary Call: Regulatory Event Bank of America Corp. is a bank holding company whose subsidiaries offer banking, investing, asset management, and other financial and risk-management products and services. The company's subsidiaries also provide mortgage lending, investment banking and securities brokerage services.

Bank of America Corp. BAC.M 2



Extraordinary Call: Regulatory Event Bank of America Corp. is a bank holding company whose subsidiaries offer banking, investing, asset management, and other financial and risk-management products and services. The company's subsidiaries also provide mortgage lending, investment banking and securities brokerage services.

Duke Energy Corporation DUK.A 1 5.75% Cumulative Perpetual Preferred Conservative Income


Extraordinary Call: Change in tax law, Rating Agency Event Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets. The Company manages a portfolio of natural gas and electric supply, delivery, and trading businesses in the United States and Latin America.

Source: Bloomberg, Security Prospectus


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Group 1: Tax Advantaged Securities (cont.)


JPMorgan Chase & Co. JPM.C 1

6.00% Non-cumulative Perpetual Preferred Conservative Income


Extraordinary Call: Regulatory Event JPMorgan Chase & Co. is a bank holding company whose subsidiaries offer banking, investing, asset management, and other financial and risk-management products and services. The company's subsidiaries also provide mortgage lending, investment banking and securities brokerage services.

Keycorp KEY.K 3 5.625% Non-cumulative Perpetual Preferred Moderate Income


Extraordinary Call: Regulatory Event KeyCorp is a financial services holding company. The company provides a wide range of retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate, and institutional clients.

Spire Inc. SR.A 3 5.90% Perpetual Cumulative Preferred Aggressive Income


Extraordinary Call: Rating Agency Event Spire Inc. is a public utility company involved in the retail distribution of natural gas serving eastern Missouri and parts of several other counties. Spire also operates underground natural gas storage fields and transports and stores liquid propane.



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Group 1: Tax Advantaged Securities (cont.)


US Bancorp USB.P 2



Extraordinary Call: Regulatory Event US Bancorp is a bank holding company whose subsidiaries offer banking, investing, asset management, and other financial and consumer credit products and services. The company has no major capital markets businesses.

Webster Financial Corporation WBS.F 3 5.25% Perpetual Noncumulative Preferred Aggressive Income


Extraordinary Call: Regulatory Event Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its subsidiaries, it provides a wide range of banking services to customers in the northeast from New York to Massachusetts. With over $26 billion in total assets, the company ranks among the nation’s 66 largest bank holding companies.



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Group 2: Debt and Other Securities - Eligible for Non-resident alien (NRA) accounts.


AT&T Inc. TBB 2 5.35% Senior Unsecured Debentures due on 11/01/2066 Moderate Income


Extraordinary Call: Change in tax law A national provider of telecommunication services including wire-line and wireless phone service, internet access, television programming and security services. The company expanded into the production and distribution of media and entertainment content with the acquisition of Time Warner Inc.

AT&T Inc. TBC 2 5.625% Senior Unsecured Debentures due on 08/01/2067 Moderate Income


Extraordinary Call: Change in tax law A national provider of telecommunication services including wire-line and wireless phone service, internet access, television programming and security services. The company expanded into the production and distribution of media and entertainment content with the acquisition of Time Warner Inc.

CMS Energy Corp CMSC 1 5.875% Junior Subordinated Debentures due on 10/15/2078, 10 year coupon deferral Conservative Income


Extraordinary Call: Change in tax law, Rating Agency Event CMS Energy Corporation is an energy company. The company, through its subsidiaries, provides electricity and natural gas to its customers. CMS Energy also invests in and operates non-utility power generation plants in the United States and abroad.

CMS Energy Corp CMSD 1 5.875% Junior Subordinated Debentures due on 03/01/2079, 10 year coupon deferral Conservative Income


Extraordinary Call: Change in tax law, Rating Agency Event CMS Energy Corporation is an energy company. The company, through its subsidiaries, provides electricity and natural gas to its customers. CMS Energy also invests in and operates non-utility power generation plants in the United States and abroad.



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Group 2: Debt and Other Securities (cont.)


Duke Energy Corp. DUKB 1 5.625% Junior Subordinated Debentures due on 09/15/2078, 10 year coupon deferral Conservative Income


Extraordinary Call: Change in tax law, Rating Agency Event Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets. The Company manages a portfolio of natural gas and electric supply, delivery, and trading businesses in the United States and Latin America.

NextEra Energy Capital Holdings, Inc. NEE.N 1 5.65% Junior Subordinated Debentures due on 03/01/2079, 10 year coupon deferral Conservative Income

Extraordinary Call: Change in tax law, Rating Agency Event, Bermuda Corporate Event Callable on/after 6/15/2024 NextEra Energy Capital Holdings, Inc. operates as a holding company. The company, through its subsidiaries, develops, constructs, operates and manages wind and solar energy plants, electric transmission lines, natural gas pipelines and energy storage facilities. NextEra Energy Capital Holdings serves clients across North America.

RenaissanceRe Holdings Ltd. RNR.F 1 5.75% Non-cumulative Perpetual Preferred Conservative Income

Extraordinary Call: Change in tax law, Rating Agency Event, Bermuda Corporate Event Callable on/after 6/30/2023 RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company's business primarily consists of catastrophe reinsurance, specialty reinsurance, and individual risk business.



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Group 2: Debt and Other Securities (cont.)


Southern Co. SOJB 1 5.25% Junior Subordinated Debentures due on 10/01/2076, 10 year coupon deferral Conservative Income


Extraordinary Call: Change in tax law, Rating Agency Event The Southern Company is a public utility holding company that generates, wholesales, and retails electricity in the southeastern United States. The company also offers wireless telecommunications services, and provides businesses with two-way radio, telephone, paging, and internet access services, as well as wholesales fiber optic solutions.

WR Berkley Corporation WRB.F 1 5.10% Subordinated Debentures due on 12/30/2059, 5 year coupon deferral Conservative Income

Extraordinary Call: Change in tax law, Rating Agency Event Callable on/after 12/30/2024 Berkley is an insurance holding company based in Greenwich, Connecticut. Through its various subsidiaries, Berkley offers insurance and reinsurance products to its customers, worldwide. Many of the company’s products, in specialty and commercial insurance, require a high degree of underwriting expertise, which allows it to charge higher premiums.



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Group 3: REITs (Real Estate Investment Trusts) - Dividends generally qualify for a 20% dividends received deduction (DRD), which applies to both individuals and corporations. There may be specific income limitations that would prohibit a taxpayer from taking advantage of the deduction. For additional information, please consult your tax advisor. Not suitable for non-resident alien (NRA) accounts.


Public Storage PSA.H 1

5.60% Cumulative Redeemable Perpetual Preferred Conservative Income


Extraordinary Call: None Public Storage is a real estate investment trust whose principal business activities include the acquisition, development, ownership, and operation of self-storage facilities in the United States. Public Storage also own an equity interest in an owner and operator of self-storage facilities in Europe.

PS Business Parks PSB.X 1

5.25% Cumulative Redeemable Perpetual Preferred Conservative Income


Extraordinary Call: None PS Business Parks is a REIT that was incorporated in 1990. As of June 30, 2017, it owned 78% of the common partnership units of PS Business Parks, L.P. (the operating partnership). The remaining common partnership units are owned by Public Storage. PS Business Parks L.P owns, acquires and operates commercial properties, primarily multi-tenant flex, office and industrial space.

Spirit Realty Capital Inc. SRC.A 6

6.00% Cumulative Redeemable Perpetual Preferred Aggressive Growth &

Income Callable on/after 10/03/2022

Extraordinary Call: None Spirit Realty Capital Inc. is a REIT that invests in single-tenant, triple-net leases primarily in the retail, service, and distribution industries in the United States.



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Extraordinary Call Features

Make-whole call—this security can be called anytime at the issuer’s discretion at the higher of par or a make-whole premium (if any) pursuant to the terms of the make-whole call provision. Change in tax law—these are securities that pay interest quarterly—such interest is taxed as ordinary income. These debt/other securities are suitable for non-resident aliens (NRAs) accounts. Rating Agency Event—following a change in rating methodology by one of the major rating agencies in which an agency changes the amount of equity credit assigned to this particular security, the issuer has the right to redeem the security—most often the redemption price is 102% of par; however the Rating Agency Event must occur before the Optional Call Date for it to be valid. Regulatory Event—if the applicable regulator does not allow the security to count as Regulatory Capital (such as Tier 1 Capital in the case of U.S. banks) the issuer has the right to redeem the security at par. While the Federal Reserve has requested that perpetual non-cumulative preferred securities be allowed to count as Tier 1 capital, such securities might not be allowed to count as capital under the Basel III accord. If such securities do not qualify as Tier 1 capital under Basel III, the issuer has the right to redeem the security at par. Change of Control — upon a change of control, issuer has the right to redeem the securities at par; otherwise holder may elect to convert the preferred shares to common. Bermuda Corporate Event — Issuer has the right to redeem the securities at par following a decision to reincorporate (outside of Bermuda). Source: Company prospectus


* Structural subordination incorporates where in the capital structure the security ranks. In a default of payment situation securities that have priority typically receive payment prior to security claims that rank lower (subordinate) in the capital structure of the company.

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Portfolio Suitability

We recognize that investors with similar investment objectives may have substantially different risk tolerances. Although all investments involve some degree of risk, including the potential loss of principal, some securities have more risks than others. With a Category 1, we believe the risk of losing money due to a credit event is small, but the potential for gain also appears limited. With a Category 10, the risk of losing money appears much higher, but we believe there is also a greater potential for gain.

Our risk opinion on fixed income securities should be used as a guide to the potential credit risk from a particular issuer and structural subordination*. The risk opinion takes into account credit and structural subordination considerations only and does not incorporate risks related to interest rate risk, inflation risks, liquidity risks, call and prepayment risks or other types of security specific risk.

The risk opinion is a guide to the risk from a credit perspective only; it does not factor how the security is used within a portfolio. If a security falls into category 4, this does not mean the security is unsuitable for categories 1-3, as an allocation of the security in these categories may be acceptable in a diversified portfolio. Diversification is a key component of portfolio construction, concentration among issuers or sectors expose an investor to added risk. Investors should consider their individual financial condition and ability to evaluate and tolerate the risks of any product before investing.

The suitability of the individual security should be reviewed by investors and their Wells Fargo Advisors Financial Advisor to determine whether a particular security is suitable for their portfolios, with full consideration given to existing portfolio holdings.


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Credit Ratings


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IMPORTANT DISCLOSURES Wells Fargo Advisors trades or may trade as principal in the preferred securities (or in related derivatives) discussed in this report. Analyst or household member owns a long common equity position in Keycorp. Disclaimers Pricing as of June 09, 2020 unless otherwise noted. Investments in fixed-income securities are subject to interest rate, credit/default, liquidity, inflation and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price. Credit risk is the risk that an issuer will default on payments of interest and principal. This risk is higher when investing in high yield bonds, also known as junk bonds, which have lower ratings and are subject to greater volatility. If sold prior to maturity, fixed income securities are subject to market risk. All fixed income investments may be worth less than their original cost upon redemption or maturity. There are special risks associated with investing in preferred securities. Preferred securities are subject to interest rate and credit risks. Interest rate risk is the risk that preferred securities will decline in value because of changes in interest rates. Credit risk is the risk that an issuer will default on payments of interest and principal. Preferred securities are generally subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment than more senior securities. In addition, the issue may be callable which may negatively impact the return of the security. Preferred dividends are not guaranteed and are subject to deferral or elimination. There are special risks associated with an investment in real estate, including the possible illiquidity of the underlying properties, credit risk, interest rate fluctuations and the impact of varied economic conditions. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets. Diversification cannot eliminate the risk of fluctuating prices and uncertain returns. Duration is a measure used to determine a bond/s or bond portfolio’s sensitivity to movements in interest rates. Generally, the longer the duration the more sensitive a bond or bond portfolio is to changes in interest rates. Bond prices fluctuate inversely to changes in interest rates. Long duration bonds are generally more sensitive to interest rate moves. One way

Disclosure Information For important disclosure information, please contact: Wells Fargo Advisors Attn: Advice & Research (Disclosure Information) One North Jefferson St. Louis, MO 63103 Or call: (877)-785-4332 Please remember to specify the issuer(s) with respect to which you would like to receive disclosure information.

ANALYST CERTIFICATION: The Analyst who prepared this report hereby certifies that the views expressed in this report accurately reflect his/her personal views about the subject companies and their securities. The Analyst also certifies that he/she has not been, is not, and will not be receiving direct or indirect compensation for expressing the specific recommendation(s) or view(s) in this report.


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for investors to gauge their interest rate risk is to determine the duration of their fixed-income portfolio. If the duration is above an investor’s comfort zone, they should look at strategies that can reduce their portfolio duration. The duration calculation can be used by investors to approximate the percentage change in price per 1% parallel shift in the yield curve. For example, the price of a bond with a duration of five years would be expected to rise or fall 5% in price for every 1% decrease or increase in market interest rates. Wells Fargo Advisors research analysts receive no compensation in connection with the firm’s investment banking, sales and trading, or principal trading revenues. Analysts may be eligible for annual bonus compensation based on the overall profitability of the firm, which takes into account revenues derived from all the firm’s business activities, including its investment banking business, sales and trading, and principal trading. Advice & Research works with information received from various resources including, but not limited to, research from affiliated and unaffiliated research correspondents as well as other sources. Advice & Research does not assign ratings to or project target prices for any of the securities mentioned in this report. Advice & Research receives research from affiliated and unaffiliated correspondent research providers with which Wells Fargo Advisors has an agreement to obtain research reports. Each correspondent research report reflects the different assumptions, opinions, and the methods of the analysts who prepare them. Any opinions, prices or estimates contained in this report is as of the date of this publication and is subject to change without notice. Additional information available upon request. Past performance is not a guide to future performance. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee as to its accuracy or completeness. This material is published solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product. Opinions and estimates are as of a certain date and subject to change without notice. Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors. Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly-owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. © 2020 Wells Fargo Clearing Services, LLC. All rights reserved. v04132020

recommended preferreds - wells fargo advisors...recommended preferreds summary ... list, in and of...

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