OPP-C: A 6.00% Term Preferred IPO From RiverNorth/DoubleLine Strategic Opportunity Fund

2025-01-13 09:59:15 ET

Summary

• RiverNorth/DoubleLine Strategic Opportunity Fund issued a new 6.00% term preferred stock (OPP-C) with a $10 par value.
• OPP-C offers a strong credit quality, backed by a large cushion from common share distributions, making it a relatively safe investment for up to three years.
• The fund's capital structure and asset coverage covenants further enhance the security of OPP-C, despite its small issue size potentially limiting large positions.
• OPP-C is overvalued compared to 3-year treasuries, narrowing its IPO spread.
• Highest-quality term preferred stock on the exchange.

Co-authored by Relative Value.

Overview

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