Preferred Share Ideas + Notes on Current Environment

Layout

• This layout section

• Each idea in a tweet (280 characters) or less.

• Relevant Prices

• Lessons and current environment

• Detailed descriptions of each idea.

Each Idea

Prices listed here were actual execution prices (for someone, not us) within the last 28 hours. They are constantly changing, so I list prices in this document. Investors should verify that similar prices are available when looking for a trade.

• AGNC: Do not pick AGNCN. Pick other AGNC preferred shares. If the price-to-buy is similar, pick based on earlier floating date or being AGNCO.

• CIM: Best price for the next 18 months? CIM-C because of price-to-buy. Near-term catalyst? CIM-B or CIM-D because of floating date.

• DX: DX-C is a nice share. Hard to get a sale. Good one to watch. Floating won’t kick in for a while, but the spread is good and risk rating is low. Compare to AGNC preferred shares.

• AAIC and EFC: Pricing on EFC-C supports the idea that AAIC-C should trade around $25.00 when floating. Yield-to-call is useful here. EFC-A might trade up to call value also. EFC-C is one of the less attractive shares today.