The coupon is 5.50% and the expected rating by Fitch is BB- (speculative), but regardless investors are jumping all over this new issue from Dime Community Bancshares (DCOM) as it opened for trading around $25.40–and now is at $25.45.
This just goes to show how hungry investors are for yield–and these smaller banks have traded pretty decent in the last year.
I think this issue may trade similar to the new Triton International 6.875% issue (TRTN-D) where yield hungry investors bought it up on day 1 as it opened the 1st day on the OTC Grey Market at $25.28 (on 1/17), and is now trading at $25.38–lots of initial excitement and then a more muted response.
For myself personally I have no interest in jumping into this initial fray on the OTC Grey Market at these prices. Only at a much lower price would I have any interest at all–even with plenty of cash in our accounts this coupon simply seems to meager for a small banking company–although the issue will do fine as long as the economy remains decent.