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CYS Investments (CYS) recently announced the offering of its new series B preferred. The company issued 8 million shares with a coupon of $200 million. CYS is a mREIT primarily focused around residential mortgage securities. It mainly intends to use the proceeds to purchase more securities.

CYS is trading over the counter and is currently under the par value of $25. It's likely that the shares will appreciate above par once they begin trading on the NYSE as CYS-B. This is an opportunity for income investors to grab a 7.5% yield without having to pay above par, which is something that's not too common.

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With the recent Bernanke hearing, nobody knows when interest rates are going to rise. Most likely it's possible they could see slight bumps in 2014, but nothing significant enough to hurt principal for preferred holders. The time spent waiting for rates to rise could be used grabbing some nice dividends.

7.5% is a great yield and if you buy at the right time, you don't have to chase it above par value. For example, Dynex Capital (DX) released a 7.625% preferred very recently as well. The preferred is now trading at a 20 cent premium since trading on the NYSE. I was able to buy in barely over par value and was willing to do so because I still knew it was a good deal. CYS-B is likely to experience the same price movement as DX-B.

CYS-B is still on the OTC so many investors may not have the ability to purchase shares until they hit the NYSE. This all depends on your broker. I believe CYS-B is great opportunity if you can take it under par. Remember, if you miss the opportunity, do not chase it up. If the price doesn't drop back down, then let it go.

The OTC is being listed as CYSBP, but once it stops its temporary trading and moves to NYSE, the symbol will vary. The NYSE symbol will be either CYS-B, CYS-PB, or CYS PRB depending on your broker.

Source: New 7.50% Preferred Stock, Get In While You Can

Additional disclosure: I am long DX-B and looking to open a position in CYS-B.