- We picked up 500 shares of TWO-B, worth nearly 2% of the total portfolio.
- Shares of TWO-B are trading a very nice discount to our target buy-under price. They offer investors a very solid yield and will remain at a fixed-rate until 7/27/2027.
- When the floating rate eventually kicks in, the spread is reasonable at 5.35%.
- TWO's portfolio included far more credit risk back in March 2020. Today it emphasizes agency MBS and hedges them with MSRs. TWO is the REIT behind TWO-B.
- This is a nice time to be doing a little shopping for REITs. Plenty of bargains available throughout the sector. This time we're highlighting one of our preferred shares.
For further details see:
Two Harbors: TWO-B Or Not TWO-B