Why are preferred shares generally considered more risky than bonds?

Name: Why are preferred shares generally considered more risky than bonds?
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

Preferred shares are generally considered more risky than bonds because they have a lower priority on assets than bonds in the event of bankruptcy, and they lack the assurance of a bond's contracted for return of principal. Although preferred shares may offer higher yields than bonds, this does not necessarily make them less risky overall.

Why Are Preferred Shares Generally Considered More Risky Than Bonds