Large mortgage REIT AGNC Investment (AGNC) has announced a new issue of fixed rate reset preferred stock.
AGNC has numerous issues of preferred stock outstanding which can be seen here.
This will be the company’s first ‘fixed rate reset’ issue–no doubt in response to the elimination of LIBOR effective 6/30/2023 and it will be interesting to see what kind of ‘spread’ the company will have to pay.
A fixed rate reset issue is fixed rate for about 5 years after which it is reset at the 5 year treasury plus a ‘spread’. There after the rate is reset every 5 years.
EarlyBird was right on top of this one.