Preferreds Weekly Review: Floater Yield Confusion And Redemption Likelihood
Portfolio Pulse from
Preferred stocks have shown a strong start to the year with a 1% return, despite volatility in the Treasury market. Notably, NYMT Series E preferred has reset its coupon to SOFR + 6.691%, resulting in a yield of over 11%. This emphasizes the significance of monitoring floating-rate resets.
January 27, 2025 | 12:15 pm
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NYMT Series E preferred has reset its coupon to SOFR + 6.691%, increasing its yield to over 11%. This reset highlights the potential for higher returns in floating-rate preferreds.
The reset of NYMT Series E preferred's coupon to SOFR + 6.691% significantly increases its yield, making it more attractive to investors seeking higher returns. This move is likely to positively impact NYMT's stock price in the short term as it draws attention to the benefits of floating-rate preferreds.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80