mREIT New Residential Investment to Offer Fixed-to-Floating Rate Preferred

mREIT New Residential Investment (NRZ) will be offering a new issue of fixed-to-floating rate preferred stock.

The issue will trade with a permanent ticker of NRZ-C. The company has 2 other fixed-to-floating rate issues outstanding which can be seen here. Both issues trade relatively strongly.

The preliminary prospectus can be read here.

Affinity4Investing was quick on the draw on this one with mcg right with him/her.

18 thoughts on “mREIT New Residential Investment to Offer Fixed-to-Floating Rate Preferred”

  1. Anyone got the temporary ticker yet? I’ve just been flipping all these new issues using this website. Buy as much as you can under $25 and sell at $26+.

    1. This one might not be a flip the coupon is too low.
      Compare prices with the A and B issues they might be a better buy.

        1. Just saying….doing exactly what I said I was gonna do….already in the green…it’s so easy to make money on these preferreds

  2. Based on closing prices for A and B, and assuming C trades at 25.00, there is no switch opportunity here. Big sacrifice in current yield for a small pickup in YTC. But A and B have 4.5 years still on the call clock, so the difference in YTC isn’t worth much.

    If C trades well below 25, then maybe.

    Interestingly, in their press release announcing the pricing NRZ called this an “opportunistic” offering. I have never before seen those words used in this context.

    To me, it means if people are willing to throw money at us like this we’ll take it.

    1. Ya it is an interesting way to describe what they do (Opportunistic Offering). I really wish a more well known company would come out with something decent. I have alot of cash to put to work.

  3. I have owned the parent for awhile. Without fail it pays and seems to pay and even raise! I believe it has raised 5 years straight. I have like clockwork held 100 and when it drops in or around 15 I add 100 and trim the 100 off between 17-18.
    Worst case the company cuts dividend would they cut it 50% to make the preferred better? even after 5 years of straight raises?

    I Just stick with my 15-18 strategy and if they cut it will dump it.

    1. DC- I have to tell you what you wrote is basically something I could have said because I have basically done the same thing for 5 years.

  4. NRZ has amazed me since their IPO with their complex business. They have managed to hold the div at .50/shr on the common for many, many quarters while many were predicting financial ruin for this company. I wouldn’t own the common but I do own several hundred shrs of the NRZ-B, and it has been a decent holding. No, I wouldn’t follow Hank Williams’ advice of “dressing in style and going hog wild” on this one, but where else can you get a 6.25%-6.5% coupon these days?

  5. I see their common (NRZ) has a yield of 11.48%. Does that not concern you??????? Maybe I’m just to cautious anymore but some of these companies just give me a pause. Maybe I worked too hard over the last 50 years to throw caution to the wind. I spend about 4 hours daily reading reports and I just will stick with names that are a little more mainstream.

    1. Would concern me more if I were buying the common. When they can’t cover they cut the common not the preferred.

    2. chuckP
      Do a little research on NRZ and their holdings, I think you will find that this is one of the better run mriets. The firm started by holding MBSes and has recently bought several firms which will allow them to significantly expand their underwriting and mortgage management. While the yield is enough to cause concern, the devil is in the detail. I’ve met with them and drank the cool aide. But clearly not everyone’s cup of tea. The ceo is one of the brightest guys in the industry. But each to their own. sc

    1. Thanks Jerry–Yield talk has run high on almost every issue lately so yes I suspect your 6.25% is close.

    2. If it’s below 6.5% you’re probably better off buying NRZ-A or NRZ-B at the current price.

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