mREIT New York Mortgage Trust (NYMT) priced their new baby bond offering as expected at 9.875%.
This is their 3rd baby bond issue and will trade in the next weeks or so.
The issue becomes callable 10/1/2027 and matures 10/30/2030.
The pricing term sheet can be found here.
No interest, I’ll leave this for others.
Borrowing at almost 10% when residential mortgages are at 7% means they are leveraging the money in some way. Not even using it to roll over debt they already have.
it seems you have no idea how mreits work
That’s why I don’t hold any. Less worrying about having to trade.
Look at Tim’s Laundry list. Even with his background as a property appraiser he doesn’t hold any at least in that account. Although he has mentioned he might consider buying to juice his yield.
Everyone has different ideas and reasons for what they invest in.
Well that includes me too! A 30 second overview is not going to explain them. In 2015 that’s how MLP’s were presented !
I’ve asked a parent company what was in the McReit…, same name btw with M added. They shrugged their shoulders. Not unlike how the largest money managers handle closed end funds they manufactured!! In fact you’ll find next to no Wall Street firms have any research or coverage on mcreits.
There is the whole equity financing portion that cost 0% that you need to factor in to the overall cost of capital. But I do agree with you Charles the market is assigning them the same credit rating via the interest rate as a C rated bonds (the worst of junk).
trading at a discount
https://www.finra.org/finra-data/fixed-income/trade-history?cusip=649604816&bondType=CA