Mortgage REIT Invesco Mortgage Capital Sells Fixed to Floating Rate Preferred
By: Tim McPartland,
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.