New Baby Bond Added to Coverage: PMTW
PennyMac Mortgage Trust (PMT) recently announced a new baby bond.
This is PMTW (PMTW). It looks extremely similar to PMTV. Both carry 9% coupon rates.
There are 4 main differences:
- Shares trade under a different ticker.
- Shares become callable 6/15/2027 instead of 2/15/2027.
- Shares mature 6/15/2030 instead of 2/15/2030.
- Shares will go ex-dividend and make payments 1 about month later.
That's it. Those are the big differences. Due to the difference in ex-dividend dates, one share or the other will always have more dividend accrual. However, we can adjust for that pretty easily with share prices.
Pricing:
- PMTV: Bid is $25.10. Ask is $25.12.
- PMTW: Bid is $24.78. Ask is $24.80.
The difference in dividend accrual is worth a bit under $.20. Therefore, PMTW comes out looking better.
