Cherry Hill Mortgage: Series B Floating-Rate Preferred Yielding Over 10%
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Cherry Hill Mortgage Investment Corporation is facing challenges from rising interest rates affecting its net interest income and book value. Despite this, the company has diversified through mortgage servicing and hedging, maintaining profitability. Preferred shares are seen as a better income option due to high leverage risks with common shares.
March 11, 2025 | 6:15 pm
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Cherry Hill Mortgage Investment Corporation is dealing with rising interest rates impacting its net interest income and book value. The company has diversified through mortgage servicing and hedging, maintaining profitability. Preferred shares are recommended over common shares due to high leverage risks.
The article highlights Cherry Hill's challenges with rising interest rates affecting its financials. However, its diversification strategy has helped maintain profitability. The recommendation to prefer preferred shares over common shares due to leverage risks suggests a neutral short-term impact on the stock price.
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