While the DJIA is up a fair amount the rest of the market appears to be digesting the giant gains from last week. Of course with the bond market closed equity markets tend to be a little quieter. Quiet is good as far as I am concerned–then I just collect dividends and interest.
Today I am going to look over the new 8% term preferred from Sound Point Meridian (SPMA). The company was formed in 2022 and just went public 6 months ago—the only thing I really now about them is that they are a CLO (collateralized loan obligation) owner and they buy primarily the equity tranche. The company was not using leverage up to this point so this term preferred is very well covered with the $456 million in assets (proforma–after the term preferred offering)–with a coverage ratio of around 9.
Not really certain we need another CLO company with all the others available–i.e. Eagle Point Credit, Eagle Point Income, Oxford Lane Capital etc., but with the super asset coverage on this one it would have the best ratio in the sector–worth a look I think.
