4/4/2025
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Mortgage REIT Redwood Trust (RWT) has priced their new baby bond issue with a coupon of 9.125%.
This is the company’s 3rd baby bond in the last year. Their current outstanding 9.125% baby bond (RWTN) is currently trading at $25.27.
Below are press releases from companies with preferred stock and baby bonds outstanding. Additionally, news of a more macro economic importance may be posted.
Compass Diversified Holdings Announces Amendment of its Management Services Agreement
First Merchants Corporation Announces Cash Dividend on Its Preferred Stock
2024 Freddie Mac Multifamily Volume Reaches $66 Billion, Up 34% Year Over Year
SFL – Successful Placement of 5-year Senior Unsecured Sustainability-Linked Bonds
LuxUrban Issues Corporate update and 2025 Revenue Guidance of $62–$67 million
Brookfield Asset Management to Host Fourth Quarter 2024 Results Conference Call
Redwood Trust Prices $90.0 Million Senior Notes Offering
EPR Properties Announces Tax Status of 2024 Distributions
Kemper Announces Early Redemption Date of $450 Million of 4.350% Senior Notes Due 2025
Wells Fargo Reports Fourth Quarter 2024 Financial Results
Dynex Capital, Inc. Schedules Fourth Quarter and Full Year 2024 Earnings Release and Conference Call
OFS Credit Company Provides December 2024 Net Asset Value Update
KBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2025-1 (AOMT 2025-1)
Once again mortgage REIT Redwood Trust (RWT) is coming to market with a new issuance of baby bonds. This will be the 3rd issuance by this company in 1 year. Previous issues were sold on 1/17/2024 and 6/13/2024 with 9.125% and 9% respectively. The company also has a 10% fixed rate reset preferred outstanding (RWT-A).
I have not reviewed the company financials lately, but on the surface they are certainly racking up a lot of high yield debt.
The preliminary prospectus can be read here.
Thanks to J for posting this in Reader alerts just a bit ago. EarlyBird chimed in with some added detail.
Below are press releases from companies with preferred stock and baby bonds outstanding. Additionally, news of a more macro economic importance may be posted. Until earnings season (2nd half of January) arrives news may be relatively sparse.
EPR Properties Declares Monthly Dividend for Common Shareholders
Equitable Holdings Schedules Announcement of Full Year and Fourth Quarter 2024 Results
Citigroup Declares Common Stock Dividend; Citigroup Declares Preferred Dividends
Enstar Legacy Syndicate 2008 Agrees $196m LPT Deal with Atrium Syndicate 609
Lux Urban Hotels Embraces the Future with Digital Currency–Powered Guest Experiences
We got the number that we were hoping for–at least I did. A producer price index that was either on target or maybe a little cooler than forecast. It helped equities and interest rates for an hour or two–but now equities are red and nearly 1% off the high. Let’s face it–for now the bloom is off the rose and folks are loving money market funds.
The balances in money market funds just keep climbing—for the week ending January 8th MM funds increased by $66 billion. With MM rates now in the 4.2% to 4.45% area it is easy to understand why folks are parking cash there. I hold the Gabelli US Treasury Money Market (GABXX) and it has a 7 day yield of 4.39%–I am happy at that level and am guessing it will be available for many months to come.
Money market fund balances historically have been relatively steady, but ever since the pandemic they have gone into hyperdrive mode–pushing ever higher. The dry powder to push baby bonds and preferreds higher is massive, but can’t/won’t happen with the Fed Funds at current levels–it needs a spark to ignite that move and with short term rates remaining at current levels there is no spark.
Today I sit and study. Are there any more short duration-high yield issues I want to buy? We’ll see.