NYMT - NYMT Pfds: FOMC Policy Has Shifted But My Hold Ratings Stand

2024-01-25 07:30:00 ET

Summary

• New York Mortgage Trust is classified as a Residential mortgage REIT, or mREIT.
• This article briefly reviews the Issuer and the four preferred stocks investors can pick from: 3 fixed/floating and one fixed-rate issue.
• NYMT has significantly increased its use of preferred stocks, while NYMT's financials show a deteriorating book value and a reduction in dividends starting in 2Q 2023.
• In what I see a limited asset coverage for the preferred stocks, I will continue my prior Hold ratings.

Introduction

At the end of the 3rd quarter, I evaluated all four preferreds issued by New York Mortgage Trust (NYMT) in my NYMT: Trading Up The Capital Structure For Less Yield But Safer Assets article with two Buy ratings geared toward different risk levels investors have. Since then, the "Higher for Longer" thoughts around what the FOMC might do with the Federal Funds Rate seems to have been assigned the trash bin. Stocks and interest-rate sensitive assets rallied strongly off the October lows. While the rally might be in pause mode as the "experts" reevaluate whether the projected 75bps cuts for this year will happen....

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