Just a few severe discrepancies in pricing I noted this weekend. I know that some folks have discussed these issues before–but the pricing variances are so wide I thought I would highlight them.
The 3 company’s with wide variations in very similar baby bonds and/or preferred stocks are B Riley (RILY), Sachem Capital (SACH) and Priority Income Fund (not listed). This is not a recommendation for any particular security, but I personally own some of the Priority Income Fund term preferreds.
NOTE that the yield to worst on these charts are based on 1st possible redemption date–these charts were put together when those dates were meaningful (i.e. many issues were being called on the first possible redemption date).
Take note of the wide spread in current yields as well as the yield to worst (based on 1st call date). Investors may want to make changes in the issues owned–there are opportunities.
B Riley issues have a few differences–primarily that some pay a ‘bonus’ payment if called prior to maturity. 1 issue has the ability to call prior to the 1st call date as well with payment of a make whole payment (current value of future interest payments).
Priority Income Fund issues are all essentially the same with the exception of coupons, 1st call dates and mandatory redemption dates. You can see that the PRIF-F 6.625% issue is substantially under priced at this time.
Sachem Capital issues are all relatively the same issue with different coupons and dates.