Preferreds Weekly Review: New Issuance Is Coming

Aug. 04, 2024 7:50 PM ET, , , , , , , 3 Comments
(7min)

Summary

  • We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.
  • Preferreds were flat on the week and up month-to-date due to lower Treasury yields and steady credit spreads.
  • Agency mortgage REITs like Dynex Capital and AGNC saw drops in book value, offset by equity issuance.
  • Synovus bank preferred Series E had its coupon reset, offering an attractive yield of around 8.4% in a sector with lower yields.
  • Looking for more investing ideas like this one? Get them exclusively at Systematic Income. Learn More »

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Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

ADS Analytics runs the investing group Systematic Income which features 3 different portfolios for a range of yield targets as well interactive tools for investors, daily updates and a vibrant community.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SNV.PR.E 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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