New York Mortgage Trust, Inc. (NYMTZ)

We take a look at the action in preferreds and baby bonds through the second week of July and highlight some of the key themes we are watching. Preferreds outperformed broader markets last week; sector credit spreads have tightened, making valuations expensive and yields less attractive. Bonds offer more protection than preferreds, but preferreds provide higher yields; choice depends on issuer quality, tax treatment, and investor objectives.

We take a look at the action in preferreds and baby bonds through the third week of January and highlight some of the key themes we are watching. Preferred stocks started the year strong with a 1% return, despite Treasury market volatility, with all sectors except BDCs showing gains. NYMT Series E preferred reset its coupon to SOFR + 6.691%, raising the yield to over 11%, highlighting the importance of tracking floating-rate resets.

We take a look at the action in preferreds and baby bonds through the second week of January and highlight some of the key themes we are watching. All preferreds sectors declined due to rising Treasury yields, but the yield on the sector has become more attractive, rising to around 6.8%. The market's expectation for rate cuts has significantly decreased, impacting the relative value of floating-rate, reset, and fixed-rate preferred securities.

The Fed is expected to lower short-term rates soon, impacting distributions for investment vehicles like CEFs and BDCs. Investors should focus on both distribution paths and valuations of CEFs, as valuation changes can significantly affect portfolio wealth. BDCs, despite holding floating-rate assets, offer high dividend coverage and income diversification, making them attractive even in a rate-cutting cycle.

New offerings from New York Mortgage Trust, Dime Community Bancshares, and Oxford Lane Capital Corp. with fixed coupon rates and credit ratings. DCOMG achieved a perfect CDx3 Compliance Score, while Morgan Stanley and Regions Financial Corporation also priced new preferred stock offerings. Investors can buy new shares at wholesale prices through the OTC exchange, track past preferred stock IPOs below par, and stay updated on the current marketplace offerings.

We take a look at the action in preferreds and baby bonds through the first week of July and highlight some of the key themes we are watching. Preferreds market saw a solid week with a drop in Treasury yields and stable median yield-to-worst below 7%. Corporate bond yields stand at lowest levels in 2 years, prompting new issuance from across the space.

We take a look at the action in preferreds and baby bonds through the second week of December and highlight some of the key themes we are watching. Preferreds rallied for another week, closing in on a 10% total return for the year. We touch on the debate of whether it makes sense to hold preferreds funds or allocate to individual preferreds.

The big yields in these shares will draw in many investors. Huge dividend increases may be required when floating rates kick in. We're including my largest position.

We've got 3 picks with dividend yields from 7.5% to 13.1%. Each share also has a significant discount to either projected current book value or to call value.