Lo and behold—I just wrote about ‘call risk’ and then I found the Annaly 6.95% fixed-to-floating preferred (NLY-F), which I hold, trading at $26.25. It would be quite embarrassing to get caught with this one after warning folks of call risk.
My shares are gone—sold at $26.23. So I collected a number of dividends at a very high rate (around 10%) and got a 3.5% capital gain to boot. Will be looking for a replacement issue.
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With this one, better safe than sorry.
Some like Public Storage call them like clockwork and others won’t be called until after the sun has burned out CHS and C-N
this annaly preferred has been floating since 2022. are there any indications they are ready to call or I you just not taking any chances ?
Just checked my holdings, as I own an issue, but its NLY-G which is trading as though it could be called soon.
Now I do have another issue that is trading at 26.25 where I guess the market doesn’t expect a call. I would hate to lose my position in this issue, so what should I do? Previously my thinking was if I already made the extra 5% who cares if I lose it as long as I don’t have a reason to expect an imminent call and I am earning a fat yield. Now you have me thinking about it.