NPORT-EX 2 FC25FCPrefandIncSecFd.htm ffc-nq_022821


1

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS

February 28, 2021 (Unaudited)

 

Shares/$Par

Value

Preferred Stock & Hybrid Preferred Securities§ — 77.4%

Banking — 41.3%

144,000

BancorpSouth Bank, 5.50%, Series A

$3,730,320

*(1)

 

Bank of America Corporation:

132,500

4.375%, Series NN

3,278,712

*(1)

$12,470,000

5.875% to 03/15/28 then 3ML + 2.931%, Series FF

13,650,885

*(1)(2)

86,900

Capital One Financial Corporation, 5.00%, Series I

2,157,727

*(1)(2)

 

Citigroup, Inc.:

$2,575,000

3.875% to 02/18/26 then T5Y + 3.417%, Series X

2,566,953

*(1)

$1,200,000

4.00% to 12/10/25 then T5Y + 3.597%, Series W

1,212,000

*(1)

$1,850,000

4.70% to 01/30/25 then SOFRRATE + 3.234%, Series V

1,872,339

*(1)(2)(3)

$4,590,000

5.95% to 05/15/25 then 3ML + 3.905%, Series P

4,991,625

*(1)(2)(3)

1,036,484

6.875% to 11/15/23 then 3ML + 4.13%, Series K

28,140,540

*(1)(2)

572,357

7.125% to 09/30/23 then 3ML + 4.04%, Series J

15,694,029

*(1)(2)

 

Citizens Financial Group, Inc.:

161,500

6.35% to 04/06/24 then 3ML + 3.642%, Series D

4,430,753

*(1)(2)

$5,700,000

6.375% to 04/06/24 then 3ML + 3.157%, Series C

6,066,510

*(1)(2)(3)

 

CoBank ACB:

22,120

6.125%, Series G, 144A****

2,289,420

*(1)

104,000

6.20% to 01/01/25 then 3ML + 3.744%, Series H, 144A****

11,596,000

*(1)(2)

60,000

6.25% to 10/01/22 then 3ML + 4.557%, Series F, 144A****

6,465,000

*(1)(2)

$2,498,000

6.25% to 10/01/26 then 3ML + 4.66%, Series I, 144A****

2,785,270

*(1)(2)(3)

$4,750,000

Comerica, Inc., 5.625% to 10/01/25 then T5Y + 5.291%, Series A

5,218,825

*(1)

128,000

Cullen/Frost Bankers, Inc., 4.45%, Series B

3,182,618

*(1)

165,000

Dime Community Bancshares, Inc., 5.50%, Series A

4,182,305

*(1)

 

Fifth Third Bancorp:

288,340

6.00%, Series A

7,587,667

*(1)(2)

1,264,339

6.625% to 12/31/23 then 3ML + 3.71%, Series I

35,265,576

*(1)(2)

82,000

First Citizens BancShares, Inc., 5.375%, Series A

2,132,000

*(1)

 

First Horizon Corporation:

87,500

6.50%, Series E

2,370,375

*(1)

9

FT Real Estate Securities Company, 9.50% 03/31/31, 144A****

11,712,375

3,730

First Horizon Bank, 3ML + 0.85%, min 3.75%, 3.75%(4), 144A****

3,163,506

*(1)

47,330

Fulton Financial Corporation, 5.125%, Series A

1,202,182

*(1)

 

Goldman Sachs Group:

$1,350,000

4.95% to 02/10/25 then T5Y + 3.224%, Series R

1,439,438

*(1)

$3,460,000

5.50% to 08/10/24 then T5Y + 3.623%, Series Q

3,745,450

*(1)(2)(3)

130,242

6.375% to 05/10/24 then 3ML + 3.55%, Series K

3,530,209

*(1)(2)

178,400

Heartland Financial USA, Inc., 7.00% to 07/15/25 then T5Y + 6.675%, Series E

4,922,948

*(1)

 

HSBC Holdings PLC:

$4,400,000

HSBC Capital Funding LP, 10.176% to 06/30/30 then 3ML + 4.98%, 144A****

7,359,000

(1)(2)(3)(5)


2

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited) 

 

Shares/$Par

Value

 

Huntington Bancshares, Inc.:

528,100

6.25%, Series D

$13,392,616

*(1)(2)

$1,690,000

4.45% to 10/15/27 then T7Y + 4.045%, Series G

1,770,343

*(1)

$4,950,000

5.625% to 07/15/30 then T10Y + 4.945%, Series F

5,599,687

*(1)

$5,800,000

5.70% to 04/15/23 then 3ML + 2.88%, Series E

5,858,000

*(1)(2)(3)

 

JPMorgan Chase & Company:

$14,647,000

3ML + 3.47%, 3.6815%(4), Series I

14,613,489

*(1)(2)(3)

$2,300,000

5.00% to 08/01/24 then SOFRRATE + 3.38%, Series FF

2,365,095

*(1)

$5,450,000

6.00% to 08/01/23 then 3ML + 3.30%, Series R

5,772,302

*(1)(2)

$15,155,000

6.75% to 02/01/24 then 3ML + 3.78%, Series S

16,750,743

*(1)(2)

498,697

KeyCorp, 6.125% to 12/15/26 then 3ML + 3.892%, Series E

13,920,528

*(1)(2)

$16,750,000

M&T Bank Corporation, 6.45% to 02/15/24 then 3ML + 3.61%, Series E

18,341,250

*(1)(2)(3)

86,000

Merchants Bancorp, 6.00% to 10/01/24 then 3ML + 4.569%, Series B

2,208,910

*(1)

 

Morgan Stanley:

$2,600,000

5.30% to 03/15/23 then 3ML + 3.16%, Series N

2,697,500

*(1)(2)(3)

879,089

5.85% to 04/15/27 then 3ML + 3.491%, Series K

24,201,320

*(1)(2)

519,272

6.875% to 01/15/24 then 3ML + 3.94%, Series F

14,461,725

*(1)(2)

276,837

7.125% to 10/15/23 then 3ML + 4.32%, Series E

7,748,668

*(1)(2)

980,018

New York Community Bancorp, Inc., 6.375% to 03/17/27 then
3ML + 3.821%, Series A

27,220,000

*(1)(2)

280,000

Northpointe Bancshares, Inc., 8.25% to 12/30/25 then
SOFRRATE + 7.99%, Series
A

7,158,200

*(1)

89,600

People’s United Financial, Inc., 5.625% to 12/15/26 then 3ML + 4.02%, Series A

2,388,288

*(1)

1,489,200

PNC Financial Services Group, Inc., 6.125% to 05/01/22 then
3ML + 4.067%, Series P

38,953,749

*(1)(2)

 

Regions Financial Corporation:

562,640

5.70% to 08/15/29 then 3ML + 3.148%, Series C

15,109,866

*(1)(2)

$3,300,000

5.75% to 09/15/25 then T5Y + 5.43%, Series D

3,654,750

*(1)

27,213

6.375% to 09/15/24 then 3ML + 3.536%, Series B

733,654

*(1)

263,000

Signature Bank, 5.00%, Series A

6,535,550

*(1)

185,129

State Street Corporation, 5.90% to 03/15/24 then 3ML + 3.108%, Series D

5,068,739

*(1)(2)

59,724

Sterling Bancorp, 6.50%, Series A

1,547,807

*(1)

$1,575,000

SVB Financial Group, 4.10% to 02/15/31 then T10Y + 3.064%, Series B

1,590,868

*(1)

233,000

Synchrony Financial, 5.625%, Series A

5,998,585

*(1)(2)

385,013

Synovus Financial Corporation, 5.875% to 07/01/24 then T5Y + 4.127%, Series E

10,076,830

*(1)(2)(3)

152,000

Texas Capital Bancshares Inc., 5.75%, Series B

3,736,160

*(1)

87,000

TriState Capital Holdings, Inc., 6.375% to 07/01/26 then 3ML + 4.088%, Series B

2,323,335

*(1)


3

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited)

 

Shares/$Par

Value

 

Truist Financial Corporation:

86,000

4.75%, Series R

$2,177,090

*(1)

$4,950,000

4.95% to 12/01/25 then T5Y + 4.605%, Series P

5,335,110

*(1)

$2,450,000

5.10% to 09/01/30 then T10Y + 4.349%, Series Q

2,681,231

*(1)

161,650

Valley National Bancorp, 5.50% to 09/30/22 then 3ML + 3.578%, Series B

4,102,192

*(1)(2)

100,000

Washington Federal, Inc., 4.875%, Series A

2,480,150

*(1)

 

Wells Fargo & Company:

170,000

4.70%, Series AA

4,176,050

*(1)

1,353

7.50%, Series L

1,872,446

*(1)

$3,825,000

3.90% to 03/15/26 then T5Y + 3.453%, Series BB

3,812,664

*(1)

334,545

5.85% to 09/15/23 then 3ML + 3.09%, Series Q

8,682,714

*(1)(2)

$3,000,000

5.875% to 06/15/25 then 3ML + 3.99%, Series U

3,293,250

*(1)(2)

402,925

6.625% to 03/15/24 then 3ML + 3.69%, Series R

11,078,423

*(1)(2)

204,400

WesBanco, Inc., 6.75% to 08/15/25 then T5Y + 6.557%, Series A

5,541,284

*(1)

200,000

Wintrust Financial Corporation, 6.875% to 07/15/25 then T5Y + 6.507%, Series E

5,463,000

*(1)

 

Zions Bancorporation:

20,000

6.30% to 03/15/23 then 3ML + 4.24%, Series G

519,700

*(1)

$10,265,000

7.20% to 09/15/23 then 3ML + 4.44%, Series J

11,056,917

*(1)(2)

 

562,013,335

Financial Services — 2.3%

$2,540,000

AerCap Global Aviation Trust, 6.50% to 06/15/25 then
3ML + 4.30%, 06/15/45, 144A****

2,654,656

(5)

$8,000,000

AerCap Holdings NV, 5.875% to 10/10/24 then T5Y + 4.535%, 10/10/79

8,192,760

**(2)(3)(5)

$253,000

Charles Schwab Corporation, 5.375% to 06/01/25 then T5Y + 4.971%, Series G

276,402

*(1)

$3,700,000

Discover Financial Services, 6.125% to 09/23/25 then T5Y + 5.783%, Series D

4,065,375

*(1)

 

General Motors Financial Company:

$3,375,000

5.70% to 09/30/30 then T5Y + 4.997%, Series C

3,754,688

*(1)

$2,625,000

5.75% to 09/30/27 then 3ML + 3.598%, Series A

2,761,237

*(1)

$4,400,000

6.50% to 09/30/28 then 3ML + 3.436%, Series B

4,815,250

*(1)(2)(3)

49,993

National Rural Utilities Cooperative Finance Corporation, 5.50% 05/15/64

1,312,941

122,000 

Stifel Financial Corp., 6.25%, Series B

3,234,220

*(1)(2)

 

31,067,529

Insurance — 18.1%

65,942

AEGON Funding Company LLC, 5.10% 12/15/49

1,654,814

(5)

282,000

American Equity Investment Life Holding Company, 5.95% to 12/01/24 then
T5Y + 4.322%, Series A

7,255,860

*(1)(2)

$9,020,000

American International Group, Inc., 8.175% to 05/15/38 then
3ML + 4.195%, 05/15/58

13,223,381

(2)(3)

 

Arch Capital Group, Ltd.:

42,100

5.25%, Series E

1,064,498

**(1)(2)(5)

56,500

5.45%, Series F

1,449,508

**(1)(5)


4

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited) 

 

Shares/$Par

Value

 

Aspen Insurance Holdings Ltd.:

65,962

5.625%

$1,701,193

**(1)(5)

65,720

5.95% to 07/01/23 then 3ML + 4.06%

1,724,072

**(1)(5)

87,200

Assurant, Inc., 5.25% 01/15/61

2,173,460

 

Athene Holding Ltd.:

114,400

4.875%, Series D

2,758,756

**(1)(5)

510,000

6.35% to 06/30/29 then 3ML + 4.253%, Series A

13,828,650

**(1)(2)(5)

131,000

6.375% to 09/30/25 then T5Y + 5.97%, Series C

3,561,235

**(1)(5)

$3,315,000

AXA SA, 6.379% to 12/14/36 then 3ML + 2.256%, 144A****

4,599,944

**(1)(2)(3)(5)

36,301

Axis Capital Holdings Ltd., 5.50%, Series E

916,056

**(1)(2)(5)

$3,679,000

AXIS Specialty Finance LLC, 4.90% to 01/15/30 then T5Y + 3.186%, 01/15/40

3,768,292

(2)(3)(5)

 

Chubb Ltd.:

$4,566,000

Ace Capital Trust II, 9.70% 04/01/30

6,890,275

(2)(3)

67,400

CNO Financial Group, Inc., 5.125% 11/25/60

1,710,275

805,950

Delphi Financial Group, 3ML + 3.19%, 3.3876%(4), 05/15/37

17,529,412

(2)(3)

 

Enstar Group Ltd.:

254,000

7.00% to 09/01/28 then 3ML + 4.015%, Series D

6,965,950

**(1)(2)(5)

$2,400,000

Enstar Finance LLC, 5.75% to 09/01/25 then T5Y + 5.468%, 09/01/40

2,492,400

(5)

$700,000

Equitable Holdings, Inc., 4.95% to 12/15/25 then T5Y + 4.736%, Series B

752,850

*(1)

$7,310,000

Everest Reinsurance Holdings, 3ML + 2.385%, 2.5788%(4), 05/15/37

6,762,560

(2)(3)

$4,200,000

Kuvare US Holdings, Inc., 7.00% to 05/01/26 then
T5Y + 6.541%, 02/17/51, 144A****

4,325,496

*

$24,634,000

Liberty Mutual Group, 7.80% 03/15/37, 144A****

31,927,140

(2)(3)

 

MetLife, Inc.:

$18,250,000

9.25% 04/08/38, 144A****

27,638,365

(2)(3)

$17,895,000

10.75% 08/01/39

30,210,239

(2)(3)

$2,250,000

MetLife Capital Trust IV, 7.875% 12/15/37, 144A****

3,164,063

(2)(3)

 

PartnerRe Ltd.:

105,035

5.875%, Series I

2,652,659

**(1)(2)(5)

28,832

6.50%, Series G

728,498

**(1)(2)(5)

31,120

7.25%, Series H

785,469

**(1)(2)(5)

80,315

RenaissanceRe Holdings Ltd., 5.75%, Series F

2,142,306

**(1)(2)(5)

$5,450,000

SBL Holdings, Inc., 7.00% to 05/13/25 then T5Y + 5.58%, Series A, 144A****

5,007,188

*(1)(2)(3)

 

Unum Group:

$26,660,000

Provident Financing Trust I, 7.405% 03/15/38

30,759,658

(2)

138,000

Voya Financial, Inc., 5.35% to 09/15/29 then T5Y + 3.21%, Series B

3,630,435

*(1)

 

245,754,957

Utilities — 6.6%

224,010

Algonquin Power & Utilities Corporation, 6.20% to 07/01/24 then
3ML + 4.01%, 07/01/79, Series 2019-A

6,124,993

(2)(3)(5)

$3,752,000

CenterPoint Energy, Inc., 6.125% to 09/01/23 then 3ML + 3.27%, Series A

3,978,963

*(1)(2)


5

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited)

 

Shares/$Par

Value

 

Commonwealth Edison:

$16,798,000

COMED Financing III, 6.35% 03/15/33

$20,014,785

(2)(3)

$12,170,000

Emera, Inc., 6.75% to 06/15/26 then 3ML + 5.44%, 06/15/76, Series 2016A

14,190,889

(2)(3)(5)

98,800

Indianapolis Power & Light Company, 5.65%

10,461,873

*(1)

438,400

Integrys Energy Group, Inc., 6.00% to 08/01/23 then 3ML + 3.22%, 08/01/73

11,727,200

(2)(3)

 

NextEra Energy:

$717,000

NextEra Energy Capital Holdings, Inc., 3ML + 2.125%, 2.3415%(4),
06/15/67, Series C

670,395

(2)(3)

 

NiSource, Inc.:

$1,900,000

5.65% to 06/15/23 then T5Y + 2.843%, Series A

1,959,375

*(1)(2)

166,000

6.50% to 03/15/24 then T5Y + 3.632%, Series B

4,457,781

*(1)(2)

 

PECO Energy:

$2,386,000

PECO Energy Capital Trust III, 7.38% 04/06/28, Series D

3,061,419

(2)(3)

$5,900,000

Sempra Energy, 4.875% to 10/15/25 then T5Y + 4.55%, Series C

6,303,855

*(1)

 

Southern California Edison:

737

SCE Trust II, 5.10%, Series G

17,810

*(1)

133,800

SCE Trust V, 5.45% to 03/15/26 then 3ML + 3.79%, Series K

3,338,979

*(1)(2)

$2,500,000

Southern California Edison Company, 6.25% to 02/01/22 then
3ML + 4.199%, Series E

2,550,339

*(1)(2)

67,170

Southern Company, 4.95% 01/30/80, Series 2020A

1,713,843

 

90,572,499

Energy — 6.1%

 

DCP Midstream LP:

$6,450,000

7.375% to 12/15/22 then 3ML + 5.148%, Series A

5,563,125

(1)(2)(3)

21,500

7.875% to 06/15/23 then 3ML + 4.919%, Series B

478,913

(1)

$2,510,000

DCP Midstream LLC, 5.85% to 05/21/23 then 3ML + 3.85%, 05/21/43, 144A****

2,238,405

 

Enbridge, Inc.:

$1,600,000

5.75% to 07/15/30 then T5Y + 5.314%, 07/15/80, Series 2020-A

1,725,633

(5)

$6,200,000

6.00% to 01/15/27 then 3ML + 3.89%, 01/15/77, Series 2016-A

6,547,466

(2)(3)(5)

 

Energy Transfer LP:

 

Energy Transfer Operating LP:

$3,769,000

7.125% to 05/15/30 then T5Y + 5.306%, Series G

3,645,075

(1)

578,570

7.375% to 05/15/23 then 3ML + 4.53%, Series C

12,625,844

(1)(2)

836,400

7.60% to 05/15/24 then 3ML + 5.161%, Series E

18,954,915

(1)(2)

8,600

7.625% to 08/15/23 then 3ML + 4.738%, Series D

194,446

(1)

$3,700,000

Enterprise Products Operating L.P., 5.25% to 08/16/27 then
3ML + 3.033%, 08/16/77, Series E

3,694,230

(2)(3)

$8,935,000

MPLX LP, 6.875% to 02/15/23 then 3ML + 4.652%, Series B

8,979,675

(1)(2)(3)

191,783

NuStar Logistics LP, 3ML + 6.734%, 6.9753%(4), 01/15/43

4,351,556

(2)


6

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited) 

 

Shares/$Par

Value

 

Transcanada Pipelines, Ltd.:

$9,450,000

5.50% to 09/15/29 then 3ML + 4.154%, 09/15/79

$10,371,375

(2)(5)

$3,000,000

5.875% to 08/15/26 then 3ML + 4.64%, 08/15/76, Series 2016-A

3,315,633

(2)(3)(5)

 

82,686,291

Communication — 0.3%

$4,000,000

Vodafone Group PLC, 7.00% to 04/04/29 then SW5 + 4.873%, 04/04/79

4,780,055

(2)(3)(5)

 

4,780,055

Real Estate Investment Trust (REIT) — 0.1%

19,210

Annaly Capital Management, Inc., 6.95% to 09/30/22 then 3ML + 4.993%, Series F

471,702

(1)

34,998

Digital Realty Trust, Inc., 5.20%, Series L

910,473

(1)

 

1,382,175

Miscellaneous Industries — 2.6%

$1,850,000

Apollo Management Holdings LP, 4.95% to 12/17/24 then
T5Y + 3.266%, 01/14/50, 144A****

1,899,422

(2)(3)

 

Land O’ Lakes, Inc.:

$6,800,000

7.00%, Series C, 144A****

6,832,946

*(1)

$7,900,000

7.25%, Series B, 144A****

8,117,250

*(1)(2)

$9,500,000

8.00%, Series A, 144A****

9,951,250

*(1)(2)

97,900

Ocean Spray Cranberries, Inc., 6.25%, Series A, 144A****

8,517,300

*(1)(2)

 

35,318,168

 

Total Preferred Stock & Hybrid Preferred Securities
(Cost $980,712,794)

1,053,575,009

 

Contingent Capital Securities — 17.0%

Banking — 14.9%

 

Banco Bilbao Vizcaya Argentaria SA:

$12,800,000

6.125% to 11/16/27 then SW5 + 3.87%

13,472,000

**(1)(2)(3)(5)

$4,000,000

6.50% to 03/05/25 then T5Y + 5.192%, Series 9

4,297,802

**(1)(5)

$2,970,000

Banco Mercantil del Norte SA, 7.625% to 01/10/28 then T10Y + 5.353%, 144A****

3,343,923

**(1)(5)

 

Barclays Bank PLC:

$4,020,000

6.125% to 06/15/26 then T5Y + 5.867%

4,417,183

**(1)(5)

$2,975,000

7.75% to 09/15/23 then SW5 + 4.842%

3,215,499

**(1)(2)(5)

$18,863,000

7.875% to 03/15/22 then SW5 + 6.772%, 144A****

19,843,876

**(1)(2)(5)

$8,040,000

8.00% to 06/15/24 then T5Y + 5.672%

9,079,528

**(1)(2)(5)

$2,800,000

BBVA Bancomer SA, 5.875% to 09/13/29 then T5Y + 4.308%, 09/13/34, 144A****

3,124,800

(2)(3)(5)

 

BNP Paribas:

$2,050,000

4.625% to 02/25/31 then T5Y + 3.34%, 144A****

2,037,187

**(1)(5)

$2,340,000

7.00% to 08/16/28 then SW5 + 3.98%, 144A****

2,739,707

**(1)(5)

$28,790,000

7.375% to 08/19/25 then SW5 + 5.15%, 144A****

33,337,237

**(1)(2)(5)


7

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited)

 

Shares/$Par

Value

$1,630,000

Credit Agricole SA, 7.875% to 01/23/24 then SW5 + 4.898%, 144A****

$1,830,299

**(1)(5)

 

Credit Suisse Group AG:

$1,160,000

5.10% to 01/24/30 then T5Y + 3.293%, 144A****

1,184,650

**(1)(5)

$6,150,000

6.375% to 08/21/26 then T5Y + 4.822%, 144A****

6,862,385

**(1)(2)(3)(5)

$4,500,000

7.25% to 09/12/25 then SW5 + 4.332%, 144A****

5,116,478

**(1)(2)(5)

$4,700,000

7.50% to 07/17/23 then SW5 + 4.60%, 144A****

5,152,610

**(1)(2)(3)(5)

 

HSBC Holdings PLC:

$2,100,000

6.00% to 05/22/27 then ISDA5 + 3.746%

2,289,000

**(1)(2)(5)

$20,770,000

6.50% to 03/23/28 then ISDA5 + 3.606%

23,612,894

**(1)(2)(3)(5)

$475,000

Lloyds Banking Group PLC, 7.50% to 09/27/25 then SW5 + 4.496%

544,944

**(1)(5)

$3,000,000

Macquarie Bank Ltd., 6.125% to 03/08/27 then SW5 + 3.703%, 144A****

3,246,255

**(1)(2)(5)

 

Societe Generale SA:

$4,150,000

5.375% to 11/18/30 then T5Y + 4.514%, 144A****

4,286,245

**(1)(5)

$17,750,000

6.75% to 04/06/28 then SW5 + 3.929%, 144A****

19,713,505

**(1)(2)(3)(5)

$4,200,000

7.375% to 09/13/21 then SW5 + 6.238%, 144A****

4,295,928

**(1)(2)(5)

 

Standard Chartered PLC:

$1,900,000

4.75% to 07/14/31 then T5Y + 3.805%, 144A****

1,905,842

**(1)(5)

$11,370,000

7.50% to 04/02/22 then SW5 + 6.301%, 144A****

11,916,272

**(1)(2)(3)(5)

$8,000,000

7.75% to 04/02/23 then SW5 + 5.723%, 144A****

8,793,680

**(1)(2)(3)(5)

$2,800,000

UBS Group AG, 4.375% to 02/10/31 then T5Y + 3.313%, 144A****

2,765,840

**(1)(5)

 

202,425,569

Financial Services — 0.1%

$1,600,000

Deutsche Bank AG, 6.00% to 04/30/26 then T5Y + 4.524%

1,606,240

**(1)(5)

 

1,606,240

Insurance — 2.0%

 

QBE Insurance Group Ltd.:

$2,800,000

5.875% to 05/12/25 then T5Y + 5.513%, 144A****

3,034,500

**(1)(5)

$21,757,000

7.50% to 11/24/23 then SW10 + 6.03%, 11/24/43, 144A****

24,422,232

(2)(3)(5)

 

27,456,732

 

Total Contingent Capital Securities
(Cost $212,387,146)

231,488,541

 

Corporate Debt Securities§ — 4.6%

Banking — 1.5%

789,789

Texas Capital Bancshares Inc., 6.50% 09/21/42, Sub Notes

20,293,629

(2)

14,963

Zions Bancorporation, 6.95% to 09/15/23 then 3ML + 3.89%, 09/15/28, Sub Notes

412,787

 

20,706,416

Financial Services — 0.0%

15,000

B. Riley Financial, Inc., 7.50% 05/31/27

380,077

 

380,077


8

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited) 

 

Shares/$Par

Value

Insurance — 1.5%

$13,500,000

Liberty Mutual Insurance, 7.697% 10/15/97, 144A****

$19,791,351

(2)(3)

 

19,791,351

Energy — 0.7%

 

Energy Transfer LP:

$6,717,000

Energy Transfer Operating LP, 8.25% 11/15/29

9,080,421

(2)(3)

 

9,080,421

Communication — 0.5%

 

Qwest Corporation:

127,729

6.50% 09/01/56

3,233,460

155,921

6.75% 06/15/57

4,076,367

 

7,309,827

Miscellaneous Industries — 0.4%

$3,550,000

Pulte Group, Inc., 7.875% 06/15/32

5,094,960

(2)(3)

 

5,094,960

 

Total Corporate Debt Securities
(Cost $50,828,150)

62,363,052

 

Money Market Fund — 0.1%

 

BlackRock Liquidity Funds:

1,414,867

T-Fund, Institutional Class

1,414,867

 

Total Money Market Fund
(Cost $1,414,867)

1,414,867

Total Investments (Cost $1,245,342,957***)

99.1

%

1,348,841,469

Other Assets and Liabilities, excluding Loan Payable (net)

0.9

%

11,868,357

Total Managed Assets

100.0

%

$1,360,709,826

Loan Principal Balance

(449,575,000

)

Total Net Assets Available To Common Stock

$911,134,826


9

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

February 28, 2021 (Unaudited)

 

  

§Date shown is maturity date unless referencing the end of the fixed-rate period of a fixed-to-floating rate security.

*Securities eligible for the Dividends Received Deduction and distributing Qualified Dividend Income.

**Securities distributing Qualified Dividend Income only.

***Aggregate cost of securities held.

****Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. At February 28, 2021, these securities amounted to $350,988,798 or 25.8% of total managed assets.

(1)Perpetual security with no stated maturity date.

(2)All or a portion of this security is pledged as collateral for the Fund’s loan. The total value of such securities was $1,007,206,889 at February 28, 2021.

(3)All or a portion of this security has been rehypothecated. The total value of such securities was $438,337,913 at February 28, 2021.

(4)Represents the rate in effect as of the reporting date.

(5)Foreign Issuer.

A Contingent Capital Security is a hybrid security with contractual loss-absorption characteristics.

The percentage shown for each investment category is the total value of that category as a percentage of total managed assets.

ABBREVIATIONS:

3ML3-Month ICE LIBOR USD A/360

ISDA55-year USD ICE Swap Semiannual 30/360

SOFRRATESecured Overnight Funding Rate, Federal Reserve Bank of New York

SW55-year USD Swap Semiannual 30/360

SW1010-year USD Swap Semiannual 30/360

T5YFederal Reserve H.15 5-Yr Constant Maturity Treasury Semiannual yield

T7YFederal Reserve H.15 7-Yr Constant Maturity Treasury Semiannual yield

T10YFederal Reserve H.15 10-Yr Constant Maturity Treasury Semiannual yield

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

Financial Highlights(1)

For the period December 1, 2020 through February 28, 2021 (Unaudited)

For a Common Stock share outstanding throughout the period

 


10

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period

$20.56

INVESTMENT OPERATIONS:

Net investment income

0.36

Net realized and unrealized gain/(loss) on investments

(0.13

)

Total from investment operations

0.23

DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:

From net investment income

(0.39

)

Total distributions to Common Stock Shareholders

(0.39

)

Net asset value, end of period

$20.40

Market value, end of period

$22.12

Common Stock shares outstanding, end of period

44,661,868

RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON STOCK SHAREHOLDERS: 

Net investment income†

6.91

%*

Operating expenses including interest expense

1.33

%*

Operating expenses excluding interest expense

0.87

%*

SUPPLEMENTAL DATA:††

Portfolio turnover rate

3

%**

Total managed assets, end of period (in 000’s)

$1,360,710

Ratio of operating expenses including interest expense to
average total managed assets

0.90

%*

Ratio of operating expenses excluding interest expense to
average total managed assets

0.59

%*

  

(1)These tables summarize the three months ended February 28, 2021 and should be read in conjunction with the Fund’s audited financial statements, including notes to the financial statements, in its Annual Report dated November 30, 2020.

*Annualized.

**Not annualized.

The net investment income ratios reflect income net of operating expenses, including interest expense.

††Information presented under heading Supplemental Data includes loan principal balance.

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

Financial Highlights (Continued)

Per Share of Common Stock (Unaudited) 

 


11

 

Total
Dividends
Paid

Net Asset
Value

NYSE
Closing
Price

Dividend
Reinvestment
Price
(1)

December 31, 2020

$0.1290

$20.88

$23.43

$22.26

January 29, 2021

 0.1290

 20.69

 22.37

 21.25

February 26, 2021

 0.1290

 20.40

 22.12

 21.01

  

(1)Whenever the net asset value per share of the Fund’s Common Stock is less than or equal to the market price per share on the reinvestment date, new shares issued will be valued at the higher of net asset value or 95% of the then current market price. Otherwise, the reinvestment shares of Common Stock will be purchased in the open market.

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

NOTES TO PORTFOLIO OF INVESTMENTS (Unaudited)

 

12

1.Aggregate Information for Federal Income Tax Purposes

At February 28, 2021, the aggregate cost of securities for federal income tax purposes was $1,255,495,238, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $115,700,279 and the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $22,354,048.

2. Additional Accounting Standards

Fair Value Measurements: The Fund has analyzed all existing investments to determine the significance and character of all inputs to their fair value determination. The levels of fair value inputs used to measure the Fund’s investments are characterized into a fair value hierarchy. Where inputs for an asset or liability fall into more than one level in the fair value hierarchy, the investment is classified in its entirety based on the lowest level input that is significant to that investment’s valuation. The three levels of the fair value hierarchy are described below:

 

Level 1 –

quoted prices in active markets for identical securities

 

Level 2 –

other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

Level 3 –

significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Transfers in and out of levels are recognized at market value at the end of the period.

 

Flaherty & Crumrine Preferred and Income Securities Fund Incorporated

NOTES TO PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

 

13

A summary of the inputs used to value the Fund’s investments as of February 28, 2021 is as follows:

 

Total
Value at
February 28,
2021

Level 1
Quoted
Price

Level 2
Significant
Observable
Inputs

Level 3
Significant
Unobservable
Inputs

Preferred Stock & Hybrid Preferred Securities

Banking

$562,013,335

$455,132,012

$106,881,323

$

Financial Services

 31,067,529

 24,347,498

 6,720,031

 —

Insurance

 245,754,957

 56,703,694

 189,051,263

 —

Utilities

 90,572,499

 25,936,224

 64,636,275

 —

Energy

 82,686,291

 48,986,245

 33,700,046

 —

Communication

 4,780,055

 4,780,055

 —

 —

Real Estate Investment Trust (REIT)

 1,382,175

 1,382,175

 —