Two New Baby Bonds Under Coverage: MFAN and PMTU
Just a quick note for our members. We’ve added coverage of the baby bonds from MFA Financial (MFA) MFA 0.00%↑ and PennyMac Mortgage Trust (PMT) PMT 0.00%↑.
Both securities are live in the spreadsheets (restricted to members).
You’ll find them on the “preferred” tab in rows 11 (for PMTU) and 12 (for MFAN).
I still have a little work to do there as the yield to call is not populating yet.
Process for targets:
“Strong buy under” is primarily established using yield to maturity, considering the risk rating and length of time to maturity.
“Buy under” is established the same way (using yield to maturity), but with a lower required rate.
“Overpriced” is based on a minimum yield to call. At that price, the yield on the bonds would not have a big enough margin over Treasury rates.
Like all of our baby bond and preferred share targets, the price target updates slightly each day for dividend accrual. After all, investors buying after an ex-dividend date should be looking for a slightly lower price.
All our spreadsheets can be accessed using this link (restricted to paid members):
https://www.thereitforum.com/p/reit-forum-google-sheet-links
If you’re using that link, choose the “Preferred Shares” option when it loads.
If you have paid membership to The REIT Forum through Seeking Alpha and don’t have complimentary access set up here yet, just reply to this e-mail with your SA profile name. We verify membership before adding people.
We like MFAN and bought it early.
We do not trust PMT management, so we avoid their securities these days. Too much Countrywide left there, IMHO.