As holders of the new 7.50% fixed-to-floating rate issue from mREIT New Residential Investment (NYSE:NRZ-A) already know the issue has been heading strongly higher. Today closing at $25.80 after trading as high as $26.05.
Our personal holding of a full position at $24.94 has now been sold. This position was bought on the OTC Grey market on 6/26 with the clear intention to hold for at least 1-2% of capital appreciation–fortunately with a spike the last couple days we exited with a strong 3%+ profit.
This does not mean we think it has peaked—it simply means that we bought with the intention to sell within a month—the goal was reached and we exited.
Additionally today we locked down a nice gain in the Pebblebrook Hotels 6.375% perpetual preferred shares (NYSE:PEB-E). We had bought this in a “dividend capture” trade. We purchased 1/2 the position on 6/10 for $25.29 and the second 1/2 on 6/19 for $25.20. Shares went ex-dividend on 6/27 and we let our shares go today for $25.20. This gives us about a 36 cent profit in about a month.
So now we go back to looking for the next couple of issues to buy.