Replies to post #103350 on Savvy Trades and Investments

[SSKILLZ1]

RITM-PD

In my opinion the preferred is better. It yields 8.27%. But in reality I think if interest rates are anywhere near here the preferred will be called. You have to understand the rate reset is the very attractive thing here which is why I would be surprised if it isn't called. Right now it would lead to 10.29% Yield on the $25 Call price. Which would lead to over a 12% yield for a preferred. If your like me and believe it will be called in 2026, than Your Looking at about 13% YTM on this preferred stock. Getting a 13% YTM on short-term preferred paper and if I'm wrong and it doesn't get called, I will stunned if the yield doesn't go up significantly from it's current rate. So It is a high Yileding preferred, but the real benefit here is the rate reset which I think means it is likely to be called in 2026, as I don't see the 5 year going anywhere where it was. But even if I'm wrong it means the yield is gonna go up when the rate reset occurs. All is just my opinion, and I could always be wrong though.