The new 8% fixed-to-floating rate issue from mREIT Chimera Investment (NYSE:CIM) is now trading under the temporary OTC Grey Market Ticker of CMIMP. The last trade as shown on eTrade crossed at $24.70.
As mentioned by a number of readers the spread on the CIM-B 8% fixed-to-floating, which is currently outstanding, is superior to the new issue. The new issue has a spread of 5.379% starting in 2024 while the old 8% issue has a spread of 5.791% being on the same date. The old issue is trading at $25.21–this would indicate to us there is modest opportunity for a ‘flip’ of the new issue–but it is just a 30 cent opportunity so it isn’t worth much.
NOTE–ETRADE CONTINUES TO SHOW THIS ISSUE HAS A 8.125% COUPON, BUT THE OFFICIAL FINAL PRICING DOCUMENT HAS 8%.