| Floating Preferreds Have Monstrous Yields Due To Timing Phenomenon |
Floating rate preferreds, initially created in a zero interest rate environment, now yield around 10% due to the timing phenomenon and changes in interest rates. Key factors for analysis include company stability, size of preferred issue relative to common equity, discount/premium to par value, and adjustment above SOFR. Risks include rapid yield curve fluctuations and potential Fed rate cuts, which could lower SOFR and subsequently reduce yields on floating rate preferreds. |
seekingalpha.com |
2025-04-07 19:49:56 |
Czytaj oryginał (ang.) |
| Preferreds/Bond Weekly Review: Couple Of New Issues |
We take a look at the action in preferreds and baby bonds through the first week of March and highlight some of the key themes we are watching. Most preferreds sectors declined due to rising Treasury yields and wider spreads, reflecting weaker risk sentiment and lower equity prices. PennyMac Mortgage Investment Trust issued a new 9% 2030 bond, trading at an 8.35% yield, offering a stable book value profile. |
seekingalpha.com |
2025-03-16 06:37:37 |
Czytaj oryginał (ang.) |
| 9% Yields From Baby Bonds |
Yield to maturity is crucial in baby bond analysis. Yield to call can also be relevant when call risk is more relevant. We're starting with a hypothetical for demonstrating a key point, then we'll look at two baby bonds as they are trading today. Market inefficiencies can arise from liquidity issues, creating trading opportunities between similar preferred shares or baby bonds. |
seekingalpha.com |
2025-03-06 17:00:18 |
Czytaj oryginał (ang.) |
| PennyMac Mortgage Investment Trust: Best Preferred Share Is Series C, Yielding 8.5% |
PennyMac Mortgage Investment Trust offers a diversified investment strategy, balancing loans, mortgage-backed securities, servicing, and CRT investments, mitigating risks from interest rate fluctuations. Despite a tempting 11.75% dividend yield on common shares, rising delinquency rates and high interest rates pose unique risks. The Series C preferred shares offer a more attractive and stable 8.5% yield, making them a superior option for income investors. |
seekingalpha.com |
2025-02-04 11:03:58 |
Czytaj oryginał (ang.) |
| Select High Yield Preferreds Remain Opportunistically Priced |
Recent macroeconomic changes, including the yield curve uninverting and Fed rate cuts, have significantly impacted REIT preferreds, leading to price increases and varied forward return potentials. Despite overall price rises, select REIT preferreds remain deeply discounted, offering high yields and substantial capital appreciation potential. Mispricing due to accrued dividends and variable rate conversions presents lucrative opportunities in preferreds. |
seekingalpha.com |
2024-11-26 20:03:10 |
Czytaj oryginał (ang.) |
| PennyMac Mortgage Investment Trust: Series C Preferred Shares Offer 8.2% Dividend Yield |
PennyMac Mortgage Investment Trust's Series C preferred shares offer an 8.2% dividend yield and are recommended over other options due to their discount and income potential. Despite interest rate volatility, PennyMac's net income covers preferred dividends, with improved net interest income from higher rate mortgage investments. Mortgage servicing is cash flow positive, with 98% of serviced mortgages insured by Fannie Mae and Freddie Mac. |
seekingalpha.com |
2024-10-29 11:31:19 |
Czytaj oryginał (ang.) |
| The Dangers Of High Yield Preferreds |
Some high yield preferreds offer stable double-digit yields and potential for capital gains, trading at discounts to par value. Preferreds are paid through dividends, liquidation preference, and redemption, but sit below debt in the capital stack, making them riskier than bonds. Risks include lack of equity cushion, business volatility, and bad actor risk, highlighting the importance of thorough research and caution when investing in preferreds. |
seekingalpha.com |
2024-07-05 20:09:05 |
Czytaj oryginał (ang.) |
| Preferreds Weekly Review: Will Bond Issuance Lead To Preferreds Redemptions |
We take a look at the action in preferreds and baby bonds through the third week of May and highlight some of the key themes we are watching. Preferred stocks had a good week as longer-term Treasury yields fell. Companies are issuing bonds for reasons other than redeeming preferreds, such as taking advantage of cheap issuance and topping up leverage. |
seekingalpha.com |
2024-05-26 00:00:00 |
Czytaj oryginał (ang.) |
| Annaly: The Real Spread And Why You Should Buy After The Next Cut |
Annaly: The Real Spread And Why You Should Buy After The Next Cut |
seekingalpha.com |
2024-02-05 07:45:21 |
Czytaj oryginał (ang.) |