Ready Capital: Distress And Opportunity, Why I Bought The Series E Preferreds
Summary
- I've been accumulating RC's 6.50% Series E Preferreds, amid a significant year-to-date selloff. They're trading for 62 cents on the dollar and offer a 10.5% dividend yield.
- RC common shares are down 40% year-to-date, while the E preferreds have dipped 16%.
- I think the selloff is overdone and the preferreds provide a compelling risk-to-reward profile at their current level.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RC.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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