Mortgage REIT Invesco Mortgage Capital Sells Fixed to Floating Rate Preferred

Mortgage REIT Invesco Mortgage Capital (ticker:IVR) has sold a fixed to floating rate preferred issue which will begin to trade tomorrow (Monday) on the OTC market.

The issue is a 7.75% fixed rate for the next 10 years–then floating.  Invesco Mortgage Capital has a preferred issue outstanding that is a 7.75% coupon which trades just under par at $24.75.  We believe that this new issue will likely be preferred by investors over the outstanding issue as it is floating rate and experience shows it will trade at a premium to the fixed rate issue (once it reaches big board trading).

We may try to pick some up for a ‘flip’ depending on where it trades tomorrow, but have no long term interest because of the perpetual nature of the issue.

Details of the issue are here.