For those with an interest in the rather new Sotherly Hotels 7.25% baby bond with a maturity date of 2021 (and early call date of 2/2019) the share price has moved slowly lower after trading recently in the $26.55 area.
Shares closed at $26 recently for a current yield of 7%. Of course if the bonds are early called next February you will realize just a 4% gain (3% plus a early redemption bonus of 1%). If they run to maturity in 2021 you will realize around 6% annually. The bonus 1% is paid if called anytime prior to maturity so a call in year 2 depending on timing could be a YTC of 6.25%.
We are personally going to put in a good til cancelled order for a few hundred shares at $25.75 for the balance of March. Recall we did buy 200 shares (all we could get at that price) at $25.55 just after the IPO.