2024-03-14 00:09:28 ET
Summary
- MFA Financial has struggled with the Federal Reserve's restrictive rate policy, leading to a decline in profitability.
- MFA stock has seen a significant increase in assets and leverage, as it seeks to invest in more loans.
- The Company's bet on interest rates stabilizing or declining creates risk, but the baby bond is safer compared to the common and preferred shares.
MFA Financial, Inc. ( MFA ) is an mREIT that invests in loans and mortgages by utilizing leverage to earn income. The company has been challenged by the restrictive rate policy of the Federal Reserve. Last year, I wrote about MFA's convertible note that was offering a high-yield return. Since then, the company has issued a new baby bond ( MFAN ) offering an 8.875% coupon maturing in 2029 that, I believe, is the best income investment between its common, preferred, and debt securities....
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MFA Financial: 8.875% Baby Bond Is Good Choice For Income