Housing Gridlock Fuels 10% Yielding Two Harbors Preferreds
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Two Harbors Investment Corp. benefits from housing market gridlock, which extends asset duration and enhances cashflow stability. Its fixed-to-floating preferreds offer high yields and potential capital appreciation, making them attractive investments.
January 24, 2025 | 9:45 pm
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Two Harbors Investment Corp. benefits from housing market gridlock, which extends the duration of its assets and enhances stability and visibility into future cashflows. Its fixed-to-floating preferreds offer high yields (9.6%-10.5%) with potential for capital appreciation, making them attractive high-yield investments.
The housing market gridlock extends the duration of Two Harbors' assets, providing stability and visibility into future cashflows. This stability supports the high yields of its fixed-to-floating preferreds, making them attractive to investors. The resilience against interest rate changes further supports stable preferred dividends, likely leading to positive investor sentiment and potential stock price appreciation.
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