mREIT New York Mortgage Trust (NYMT) has announced they will be selling a new issue of Senior Notes with a maturity date in 2030.
This will be the 3rd issue that the company has outstanding–all sold in the last 13 months.
This is following a trend for mREITs to sell only baby bonds instead of preferred shares–
The preliminary prospectus can be read here.
Thanks to J for spotting this and for jerrymac who chimed in with ‘yield talk’ in the 9.875% area.
It looks like the news didn’t play well with the prices of the NYMTx stocks today. Not a good look. NYMTN is a top 10 holding of PFFA.
Just a mini Minsky Moment for NYMT debt and preferred securities.
9.875% it is!
https://otp.tools.investis.com/clients/us/nymt_inc1/SEC/sec-show.aspx?Type=html&FilingId=18584683&CIK=0001273685&Index=10000
The current baby bonds pay less but priced below par NYMTG has about the same yield to maturity if the new one sells at par. I have enough of this higher risk REIT and have been looking for a good exit point. More debt is not a good sign.
On June 13, 2025, NYMT also entered into an agreement to issue more shares of currently outstanding preferred stock.
https://otp.tools.investis.com/clients/us/nymt_inc1/SEC/sec-show.aspx?Type=html&FilingId=18548899&CIK=0001273685&Index=10000
Thanks af–I guess I did see this in a press release–my guess is that demand for these ‘at the money’ issues is pretty light.
I always wondered how is a “note” (unsecured ) which is just a promise to pay called a bond that is secured by real assets?
Are not debentures (unsecured bonds) the more common scenario though? Basically the the faith we have in companies like MSFT to be able to pay and redeem them? You are just higher up the cap stack if crap hits the fan right?
How big of a percentage of bonds/notes are actually backed by land, buildings, etc? EAI is a pretty good example of a mortgage bond. If I understand it correctly if they fail to pay you can actually go after their assets like land/structures. I find that to be quite uncommon in the realm we discuss here.
Now corporate notes/bonds/etc are a totally different world to me thus I am not sure how common secured notes actually are compared to the rest percentage wise.