Very small mREIT Angel Oak Mortgage REIT (AOMR) priced their new issue of baby bonds last night and the coupon is 9.50%.
NOTE that this is a tiny mortgage REIT making loans that do not qualify for tradition mortgage financing and investors should strongly consider the risk/reward proposition. Additionally the proceeds from this offering are being used to purchase common shares from a large investor.
The pricing term sheet can be read here.
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Looks like 9.5% for 5 years is the price small cap mREITs are currently being charged to issue ETNs.🤔 No wonder Sachem Capital Corp. chose to wait for lower rates and cut their dividend instead.
Can get the same yield from bigger and somewhat safer REIT issues.
No interest. When my money is used to buy out someone else it smells like someone is handing off a bag of doggie doo. The other person gets the cash and I get what in return?