While most equity REITs and mortgage REITs are soaring higher today, some preferred shares were left out of the action.
It might seem like the answer is simply:
“Well, yeah. Rates are down, so who wants a fixed-to-floating share?”
That isn’t the case. Many of the fixed-to-floating shares put together at least a modest rally (up 0.8% to 2.3%).
As I’ve posted repeatedly, I’ve been looking to continue building my positions in preferred shares with an upcoming fixed-to-floating date.
Consequently, I decided to increase one of our positions again.