Preferred Share Ideas + Notes on Current Environment
This layout section
Each idea in a tweet (280 characters) or less.
Lessons and current environment
Detailed descriptions of 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.
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