CMO 7 ½ PERP Pfd

Capstead Mortgage Corp

Finance/Real Estate


Publicly traded companies mentioned herein: Annaly Capital Management Inc (NLY), Capstead Mortgage Corp (CMO)

Highlights

The presenter currently owns the series E CMO preferred issue currently trading at ~$22.72 with a coupon of 7.5%. CMO’s portfolio of agency ARMs drives churn in the portfolio, even as prepayment speeds have slowed down recently. Based on the credit risk profile and comps with NLY preferreds that pay the same coupon, he likes these shares which are trading at a discount with a healthy yield.

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Idea Discussion

Commentor 1 - 2 weeks ago

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