Preferreds Weekly Review: No News Is Great News For Dynex Capital Series C

Mar. 31, 2025 8:27 AM ET, , , , 3 Comments
(5min)

Summary

  • We take a look at the action in preferreds and baby bonds through the third week of March and highlight some of the key themes we are watching.
  • Preferred stocks gained alongside Treasuries, with credit spreads holding steady.
  • DX.PR.C's switch to a floating coupon of SOFR + 5.723% in mid-April will result in a high yield of around 9.95%.
  • DX.PR.C is expected to rise towards $26, offering an attractive holding with no net loss upon redemption after the first coupon.
  • Agency mREIT preferreds, particularly DX, NLY, and AGNC, are highly favored for their high-quality assets, liquidity, equity coverage, and high single-digit yields.
  • Systematic Income members get exclusive access to our real-world portfolio. See all our investments here »

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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

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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 DX.PR.C, AGNCP 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.

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Related Stocks

SymbolLast Price% Chg
DX.PR.C--
Dynex Capital, Inc. 6.9% SER C PFD
DX--
Dynex Capital, Inc.
AGNC--
AGNC Investment Corp.
NLY--
Annaly Capital Management, Inc.
AGNCP--
AGNC Investment Corp. 6.12 DP SH PFD F

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