Buy Cherry Hill Preferred And Sell Armour Preferred, And Other Swapportunities

Summary

  • Cherry Hill Mortgage and Armour Residential are both residential mortgage REITs that invest in agency residential mortgages.
  • Despite Cherry Hill having a better track record and a less leveraged balance sheet, Cherry Hill Preferred “A” yields 9.80% while Armour Residential Preferred “C” yields only 8.67%.
  • In this article we present opportunities to swap from one similar preferred stock or bond into another in order to increase your yield and/or reduce your risk.
  • We will also be briefly covering swaps out of ticker symbols OPINL, HT preferred stocks, and RILYL into the OPI 2025 bond, PEB.PG, and a RILY baby bond.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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Introduction

At our Conservative Income Portfolio service, we are constantly looking at all sectors and asset classes to find relative mispricing opportunities to increase our member’s portfolio yields and/or to reduce risk. Finding mispricings not only provides

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This article was written by

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The best way to provide income in today's markets while reducing risks

Trading preferred stocks and fixed income securities for more than 25 years and stocks in general for 35 years.  Author of many Seeking Alpha articles and Editor's Picks articles.

Disclosure: I/we have a beneficial long position in the shares of CHMI.PA, OPI BOND, RILYM, RILYT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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