In the last couple of weeks we have had a couple of fixed-to-floating rate mREITs move into their floating rate periods.
The New York Mortgage Trust 7.875% (NYMTM) issue is now trading with at 3 month SOFR+.2616% plus a spread of 6.429% for a very juicy +10% yield. Additionally Two Harbors Investment has an issue that just went into the floating period with their 7.25% issue (TWO-C) which will float at 3 month SOFR+.2616% plus a spread of 5.011% for a +9% yield.
I hold a few of the mREIT floating rate preferreds–in the current environment they trade very steady and almost always around $25 as they become redeemable at the same time as they become floating which means there is always a call threat.
Watch all of the floating rate issues here.
RITM has two in the 11’s
When an issue floats at a higher rate I look at their other issues that haven’t floated yet. Typically priced better if you have a longer view.
I would add NLY and AGNC
Sorry, the link takes one to the Two Harbors issue ONLY. Is it intended to link to ALL ‘floaters’? [Also, I wished to ‘reply’ to main msg; but, there is no REPLY ‘button’?]
Thank you.
Jane S
Jane, it’s here – https://innovativeincomeinvestor.com/floating-rate-and-fixed-to-floating-rate-preferred-stocks/
Thanks, Original D.
Tim –
In the column “Spread” I see “FIXED” for CHSCN, but not for CHSCM.
Can we say that CHSCM is FIXED too? CHS fixed both of those.
In their 10Q disclosure below, pfd stock Series 3 is CHSCM and pfd stock Series 2 is CHSCN.
CHS 10-Q, filed 1/10/24, p. 36:
ITEM 5. OTHER INFORMATION
On January 2, 2024, per the terms of our Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 and Series 3, and the Adjustable Interest Rate (LIBOR) Act, the stated rates of 7.10% and 6.75%, respectively, were fixed at 7.10% and 6.75% (the “Fixed Rates”), respectively. We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.
Thank you… Jane S