You would think that the spread between MTGE and AGNC would shrink.. because you can sell AGNC and buy more shares of MTGE to get a higher yield while having less rate risk.
Everybody gets 65 cents a share. Talk about coordinated. Makes me think MTGE will never get out from AGNC's thumb and is doomed to trade at a lower multiple for a long time to come.
oops, take that back, it dropped to 20.85 last December.Pretty volatile for a preferred?
I compared psa-z with psa-s since its closest to the 6% yield for both. psa-s is all over the place dipping as low as 21.85 last December and currently around 24 after recent div. One thing for sure, they issue a lot of debt. Im gonna pass on this one.
I wouldn't touch that PSA issue.. It's kind of a tough sell when you are getting in at the last letter of the alphabet (in terms of subordination). I've never seen that before! Reason why I'm chiming in here is that I saw interesting stats for today (13th) regarding finra's reg sho short disclosure..
This is an excerpt of the NYSE; going to focus on just one PSA-R
Date | Ticker | ShortVolume | ShortExemptVolume* | Total Volume| Exchange
Now for the nas
It's very surprising to me how much of the volume today was part of a short sale. It just caught my eye while I was looking at data on PSEC and others. It's all very opaque... but opaque data is better than no data.
*Orders marked short sale exempt will be accepted from US registered Broker-Dealers for the following reasons:
· a short sale order submitted by a broker-dealer that was above the national best bid at the time of submission,
· short sales where the seller may be deemed to "own" a security but who may be technically considered a short seller due to a delay in delivering the security,
· certain odd-lot transactions,
· certain domestic and foreign arbitrage transactions,
· sales resulting from over-allotments and lay-off sales, riskless principal transactions and volume weighted average priced basis trades.
Watch this SA muppet article take effect.. (regarding a portfolio company bankruptcy).. there will be a certain point in time in which they get tuckered out from selling.
They sell $100 million of 5.25% of 5 year Convertible which converts to 50.91 sh per $1000..................(which equates to $19.64 a share). Nice deal .................for them!
thats how I approach it.............takes a lot of time to research these but pays off when done right.
keep In mind some older prefs issued earlier will have less time to being called and if rate is decent enough that will sap its duration
best thing is look at graph and see how they did last year from may to august or so when rate fears gutted new issues
then compare your new issue to one that is relatively new and was impacted.
if one you are comparing to didn't get gutted then it might have less duration and not be comparable (goes down less and goes up less the low duration one)
psa-z and allstate has new one and cof-pc coming too
each has another in its class (another series) to help pricing
expected a bump in these 3 in 4 to 6 weeks and or to outperform the indices over next 4 to 6 weeks as well
Eric F. Billings retiring, the Rock will take his place.
AI is right on time with their dist announcement.. MFA, DX, ORC (hard to predict orc), AMTG, NYMT, EARN and a couple others are ever so slightly late or rather.. off estimated schedule.
There is no reason it shouldn't go to the high 10s, a return to normalcy. Before that happens, short covering and/or straight up buying will have to mow thru the formerly-underwater buyers of the low-to-mid 10s who just want to bail out.
There are still bids on 10 strike puts.. as if the SEC will say "just kidding". heh.. aug put is probably the best one to sell (~.25-.30c)
yeah, I added a bit at 9.82. Took all day.. at 3:56PM is when someone decided it was a good time to sell to me.. Yesterday there was a bit of an IV crush.. so.. I think some may have known that there was going to be a decision/something happening; but overall the masses were wrong about the outcome.
they halt after market closes-lol..................well, at least this news never leaked, they were selling a bit going into the close.