As many readers already know AllianzGI Convertible & Income Fund (NASDAQ:NCV) has priced their new perpetual preferred with a coupon of 5.625%.
This is kind of a surprise bonus as the AllianzGI Convertible & Income Fund II (NASDAQ:NCZ) priced a new preferred with a coupon of 5.50% last week and we doubt there is a nickel worth of difference between them. We should note that this issue has traded weakly on the Grey Market since issuance–around $24.80-$24.85
The new issue has a OTC Grey market ticker of NZCZP. We are not seeing the ticker being active on the eTrade platform as of yet.
Since this is a preferred issue of a closed end fund (CEF) the company is required to have an asset coverage ratio of 200% (or more). The company filing shows the a current asset coverage ratio of 262% on preferred shares.
Disclosure–we bought a measly 100 shares of the 5.50% issue in one of our accounts–we certainly realize the risk to net asset value (share price) if interest rates continue to move higher.