Analyst warns STRC perpetual preferred holders may be underpricing dislocation risk

Build Markets CIO Matt Dines says investors in perpetual preferred shares such as Strategy's STRC may be underestimating long-lived liquidity and interest-rate risks. He argues that because perpetuals have no maturity date and issuers are not required to return principal, investors relying on secondary-market exits could face trouble if spreads widen and yields rise.