30yr swap rate was 1.92 as of 6/14. I never see that mentioned in financial media. The 30yr swap rate has been much lower than 30yr tsy for a long time, but this is a bit extreme. Though the 5yr swap spread has gotten less negative as of late.. Anything beyond 5yrs is negative. The best hedging strat, if any at all, would be long/short eurodollar futs.. but that takes some planning/thinking in regards to just how FOS the fed is.. most mREIT managers aren't big on that.
I've been hissy-fitting about 'hedging' (and how it's not truly hedging) for a while now.. It seems that many mREITs had some long-lasting ptsd from the 'taper tantrum'.. It wasn't ok to hedge then, and it's not ok to hedge now.. Some of the mREITs have a daft solution to all this.. load up on credit.. Silly stuff.
Most CEFs are beating mREITs on both total return and current yield. That's pretty crazy as they use less leverage, and still hedge.. but how they hedge has a bit more thought to it (PDI is a good example). Even the dumber managers (of CEF), like Brookfield.. are doing alright with BOI/HTR; though I don't think they'd fare too well in adverse credit conditions - but same goes for most 'hybrid' mREITs.
10's @ 1.57%. Hedges continue to crush MREITS. 2-10s @ 87bps and Libor swaps will continue to reduce NIMS. Stick to prefereds
vr-a out its 24.80 or so its 5.875% so not exactly the best yield but if you use wrb-a and figure its 25 to 25.50 then both vr-a and wrb-d are worth it a little
wrb-d is 5.75% and so maybe 25.50 is possible
vr-a little more at 24.80 so that could be 25.25 to 25.75 range.
ill get some
its rga new one
Reinsurance Group of America, 5.75% Fixed/Float Sub Debentures due 6/15/2056
Ticker Symbol: TEMP06 CUSIP: 759351802 Exchange: NYSE
Security Type: Exchange-Traded Debt Security
The 5.75% subordinated debentures were issued on 6/1/2016 and are expected to begin trading on the NYSE within 30 days of their issue date. The shares may start interim trading on the Other OTC market but we are not aware that they have done so to date. QOL assigned a temporary symbol until the permanent symbol is known.
QUANTUMONLINE.COM SECURITY DESCRIPTION: Reinsurance Group of America, Inc., 5.75% Fixed-To-Floating Rate Subordinated Debentures due 2056, issued in $25 denominations, redeemable at the issuer's option on or after 6/15/2026 at $25 per share plus accrued and unpaid interest, and maturing 6/15/2056. Interest distributions of 5.75% per annum ($1.4375 per annum or $0.359375 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which will be 3/1, 6/1, 9/1 & 12/1 respectively (NOTE: the ex-dividend date is at least 2 business days prior to the record date). The debentures may be redeemable at any time prior to 6/15/2026 within 90 days of the occurrence of a rating agency event, tax event or regulatory capital event (see the prospectus for further information). Commencing on 6/15/2026 to the maturity date the Debentures will bear interest at an annual rate equal to three-month LIBOR, reset quarterly, plus 4.04%. The issuer has the discretion to defer interest payments on the Debentures for one or more interest periods of up to five consecutive years (but not beyond the maturity date). Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. This security was rated as Baa2 by Moody’s and BBB by S&P at the date of its IPO. Units are expected to
check rzb i think 1 to 1.50 still from here but its not very liquid so temper your size
now posted on quantum...................KRPPP, 6 mil at 6.50%
wont be so good not sure if even went grey
but i like this rzb
see this .5% less then rza which just had divi and is up at 29.50
rzb is at 26.50 so 3 bucks under should be 1 to 2 under at most
grabbed 2k looking for 28 to 28.50 i have 1k each 50 cents lower
wanted it to ipo bigger and lower and i think low was near 26 darn
oh well its worth 1 to 2 bucks highe i would think but with liquidity voltility
come and go could see this all blow over , credit firm up , tlt down and rate heads back up a little ..............