- NRZ-A has two sister shares, NRZ-B and NRZ-C. These shares should be viewed as interchangeable.
- The problem is not that NRZ-A is fundamentally unattractive. The shares have a stripped yield of 8.32%, a discount to call value, and a floating yield on price of 6.67%.
- Investors in NRZ-A are getting a weaker deal when compared to investors in either of the other two preferred shares.
- Investors can pick which one offers them the best deal at any given time. We find trading between similar preferred shares is a nice way to enhance returns.
For further details see:
Got New Residential Series A Preferred Shares? You May Want To Trade