While I try to not hold too many mREIT issues I did buy the new issue from New Residential (NRZ) issue. I paid $24.73
This issue is a 7% fixed rate for 5 years and then reset every 5 years at the 5 year treasury plus a fixed spread of 6.223%.
At the time I bought this issue it appeared to be superior to the other 3 issues of fixed-to-floating rate issues outstanding from New Residential (NRZ). NOW a few days later it looks to be a ‘coin toss’ as the outstanding issues have dropped 1-2%.
Just the same the ‘reset’ terms are preferred to the floating rate terms–a strong 6.223% spread is superior to the terms of the floating rate terms and the 5 year reset is preferable to the ongoing floater reset.
I plan to hold the shares.