Ellington Financial: This mREIT Offers Above 9% Through Its Preferred Stocks
Summarize this article with:
Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryEllington Financial stands out in the mREIT sector with recent credit ratings from Moody's (Ba3) and Fitch (BB-), enhancing fixed-income investor confidence.EFC's leverage profile, with a recourse debt-to-equity ratio of 1.8:1 and strong coverage metrics, supports the relative safety of its preferred dividends.EFC's preferred stocks offer varied opportunities; EFC.PR.B trades below par with a yield to worst of 6.7% and potential price appreciation at call.EFC's OTC bond yields 7% with a 3.3% spread to Treasuries, reflecting solid credit metrics and risk-adjusted return potential.Richard Drury/DigitalVision via Getty Images In the following lines, we will present a summary of the key financial indicators, capital structure, credit ratings, and characteristics of Ellington Financial (EFC) and its preferred stocks. This information provides a solid basis forThis article was written byArbitrage Trader15.44K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of EFC.PR.B, EFC.PR.A either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You