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%.
OTOH, as Fidelity won’t let me buy more B online (although I can buy more C, please explain?), I might make an offer on D (while they still let me).
They will let you buy B if you call them and place the order. Fidelity does this will all fixed-floating rate issues.
When OTC they don’t enforce that, so you can order the new online until permanent symbol assigned. INSANE? Yes
Yes, but I find that calling in is a time consuming PIA, especially if I want to change bid, etc. As for the insanity, as I said, I could put in an online order for C (also F-F) this week, but not B. And baby bonds?? Even crazier. Hit or miss, and who knows how they decide. Can buy GAINM, but not GAINL, etc., etc.