I sold today fearing that this is a catastrophe waiting to happen. According to my calculations they only have enough to pay a 4 cent dividend.
A reduction in spread of 13% translates to a reduction in dividends of .03/.07 = 43%? I so wish I knew who the people are who post this absolute unfathomable nonsense.
Me personally I appreciate short sentiment. If they point out a weakness and map it out. But pressing keys on a keyboard in such a combination as to smear a (tu.rd) across my scream doesn't have the same affect.
The preferreds will not suffer a dividend reduction....I own the ARR-B, but saw the ARR-A was at a nice price, on the pullback (25.63 now)...Actually looks a tad better than the A , on yield and yield-to-call...so, I grabbed some of that, late. (lost 0.05% on portfolio today...i.e. the preferreds hold up well)
It's because the management paid all to themselves and nothing was left for the shareholders. So we will see a cut and then maybe another SPO at 6 a share (if it ever returns to that level). What a disappointment this ARR is! It could be a great money maker like AGNC or Realty Income to shareholders only if it had a different management.
Sentiment: Strong Sell