Investors are searching for yield in this market, and Ladenburg Thalmann Asset Management CEO Phil Blancato is no different.
One area that is getting exciting is preferred stocks, he said in an interview with CNBC's "Closing Bell" Thursday.
"You look at the issuance there, it is increasing now pretty rapidly. You're getting solid yields and you get a dividend that is tax effective."
In fact, right now they are currently yielding roughly 4 percent above Treasurys, Blancato said.
For the "right kind of speculative investor," he suggests business development companies, or BDCs, which have a floating rate debt and are "somewhat secure."