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5 thoughts on “MFA Financial Prices New Baby Bond Issue”

  1. i get uneasy when a marginal outfit like this start issuing more Paper ; this would make 4 issues now outstanding ,

    1. The number of issues is a concern for me too but each MFA issue is not very big. Ulitmately REITs are among the most opaque investments. My trades are based mostly on price movement, patterns I’ve noticed and analysts I’ve learned to trust. I don’t now squat about what goes on behind the scenes.

    2. Ted, Mortgage reits are playing with other peoples money. They are borrowing at 9%. What do they have to leverage and loan it at to pay that interest to the investor on top of their fees and expenses. Pass.

  2. They just issued MFAN which pays 8.875% and was trading above stripped par, though it fell today. MFA-B fell a lot and is around 9.3% which is fair because it’s perpetual though it does have more price upside. Don’t know if they fell to align with MFAO or they just fell with the tide.
    Term issues are in style for REITs now, not seeing many new perpetuals these days.

    1. I missed/forget MFAN and might have considered taking a flier for this one. Did review MFA in light of yesterdays offer. Saw a 6 out of 10 rating, but LOW score on debt leverage. Their 3 other pfds actually looked pretty good at the moment. If you had any positions it might have made sense to swap in.

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