2024-07-16 15:35:19 ET
Summary
- NewtekOne, formerly Newtek Business Services Corp, offers baby bonds with over 8% yields, providing a good source of income for investors.
- Despite headwinds, NewtekOne saw growth in net interest income and net income before taxes, with a focus on deposit and loan growth.
- Technology services offered by Newtek positively contribute to earnings, but risks from exposure to Commercial Real Estate keep the author from investing in common shares.
Introduction
NewtekOne ( NEWT ) has a fascinating story. The company, formerly known as Newtek Business Services Corp, started as a Business Development Corporation ((BDC)). In early 2023, the company acquired National Bank of New York City and switched to a financial holding company . Today, NewtekOne acts as a bit of a hybrid, and their publicly traded baby bonds are offering over 8% yields, which I believe would be a good source of income for investors....
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NewtekOne: The Hybrid Bank Offering 8% Yields On Its Debt