Mortgage REIT PennyMac Investment Trust (PMT) has priced a new issue of senior notes.
The issue prices at 9% for 4 million shares (bonds) which have a maturity date of 6/15/2030.
PMT has 2 other senior note issues with coupons of 8.50% and 9% respectively show below-
The pricing term sheet can be found here.
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I know it’s picking up pennies in front of a steamroller, but I bought WTFCN and sold it into the rebalancing on May 30 for a 40 cent gain. Now BUSEP and PMTW both trade below issue, and both should be included in the June 30 rebalance. In this environment, these kinds of trades are about the only trades I’m willing to make.
af, BUSEP just changed from BUSEL and been flying below the radar and not many people are showing much interest in it.
Which Funds or ETF are you referring to that this might be included in on a June 30th rebalance?
The index upon which PFF is based typically includes everything with a market of $100 million — so BUSEP qualifies.
my big problem with PMT is they try and screw over their stock holders. they are involed in a lawsuit over the fixed to floating preferreds that they unilaterally moved to fixed when libor went away
Starts trading at $24.85/24.87 — exactly what you would expect based upon PMTV which has “dirty” interest.
https://www.finra.org/finra-data/fixed-income/trade-history?cusip=70931T806&bondType=CA
FWIW, when the PMTV was priced at 9.00%, the US5Y was more than 20 bps higher than now.
They’ll chisel us for every last penny af. There are certainly periods where there is more of a disconnect between pricing and the bond market–where GENERALLY over time they are fairly close.
Tells you what the market thinks an Egan Jones BBB+ credit rating is worth. But I do own both of the existing issues and tend to agree with others that PMT is one of the better horses in the MREIT glue factory.
Dan–you sure don’t want to mistake any Egan Jones rating as ‘investment grade’ thats for sure.
I already own the 8.50% issue and will study this new issue.
I’m surprised they are still a designated NSRO for corporates.. At least they are getting negative press.
https://www.wsj.com/articles/private-credit-ratings-under-scrutiny-conflicting-interests-fuel-investor-concerns-b103830b?mod=author_content_page_1_pos_4