Mortgage REIT Invesco Mortgage Capital Sells Fixed to Floating Rate Preferred

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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.


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Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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