Sell Annaly And AGNC Preferred Stocks And Buy Two Harbors Preferred Stocks

Preferred Stock Trader
Investing Group

Summary

  • First, I revisit my last pairs trade (swap) article from 5 weeks ago, buying Cherry Hill Preferred “A” and Selling Armour Residential Preferred “C”, which had a 150% annualized return.
  • Next, I cover what I believe is another very good swap opportunity, selling AGNC and Annaly preferred stocks and buying Two Harbors preferred stocks.
  • Next, I discuss my favorite agency, mREIT preferred stock, which is Two Harbors Preferred “B” stock which currently yields 10.6% and also with the best future floating rate.
  • Lastly, I have another swap, buying Two Harbors Preferred “B” and selling ARR.PC, CHMI.PA and/or IVR.PC. IVR.PC is the closest peer to TWO.PB and TWO.PB is a much better value.
  • Looking for more investing ideas like this one? Get them exclusively at Conservative Income Portfolio. Learn More »

Macchu Pichu, Peru

DestinoIkigai

Introduction

In this article I examine most of the preferred stocks in the "agency" mREIT space. Agency mREITs are those which hold mortgages which are backed by entities of the U.S. government and thus carry no credit risk. Due to much higher mortgage rates, the

Are you looking to start building a Fixed Income Portfolio?

Conservative Income Portfolio targets the best Preferred Stocks and bonds with the highest margins of safety. We strongly believe that the next decade will belong to fixed income irrespective of whether you are conservative or aggressive in your approach! Get in on the ground floor of our recently started Bond and Preferred Stock Portfolios.

If undervalued fixed income securities, bond ladder, "pinned to par" investments and high yielding cash parking opportunities sound like music to your ears, check us out!

Psst! You get access to our options portfolio as a bonus!

This article was written by

Preferred Stock Trader
8.65K Followers

Preferred Stock Trader has 30 years experience investing in preferred stocks and bonds. He utilizes a proprietary screening software researching high yield preferred stocks and bonds that are undervalued relative to securities with similar profiles for high total returns.

Preferred Stock Trader contributes to the investing group Conservative Income Portfolio which features investing ideas for undervalued preferred stocks, baby bonds, traditional bonds with the potential for high yield and capital gains. Features of Conservative Income Portfolio include: covered call opportunity portfolio, long term portfolio of stocks and bonds, exclusive articles for members, previews of public articles in advance, macro analysis, and community chat. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TWO.PB AND TWO.PC 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About NLY Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on NLY

Related Stocks

SymbolLast Price% Chg
NLY
--
TWO
--
TWO.PR.B
--
TWO.PR.C
--
Compare

Trending Analysis

Trending News