![\"STRC](\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy1pbWFnZXMuY3RtZWRpYS5pby9tZWRpYS9hcnRpY2xlLWNvdmVycy9oaS1hLWJlZ2lubmVycy1ndWlkZS10by1jcnlwdG9jdXJyZW5jeS10cmFkaW5nLXN0cmF0ZWdpZXMuanBn.jpg\")
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Potential liquidity contractions in secondary markets and surging government bond yields could spell trouble for preferred perpetual stockholders.<\/p>\n
Investors are mispricing risk for perpetual preferred stocks, like Bitcoin treasury company Strategy\u2019s Variable Rate Series<\/a> A Perpetual Stretch Preferred Stock (STRC), according to Matt Dines, the chief investment officer of credit asset management company Build Markets.<\/p>\n The corporate issuers of perpetual preferred stocks never have to repay holders their principal investment, and can just pay dividends indefinitely, without renegotiating the investment terms, Dines told<\/span><\/a> the Truth for the Commoner (TFTC) media<\/a> outlet.<\/p>\n If holders want to cash out, they must sell the perpetuals on the secondary market to recover their principal, which leaves holders exposed to liquidity contraction and interest rate risks that exist forever because perpetuals lack a maturity date, he said. He added:<\/p>\n Basic performance metrics for Strategy’s STRC perpetual preferred stock. Source:<\/em> SaylorTracker<\/em><\/a><\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n