Nice Entry Point For Farmer Mac's Preferred Securities.

Non-Correlating Stock Ideas2.04K FollowersFollow5ShareSavePlay(12min)CommentsSummaryI initiated a position in Federal Agricultural Mortgage Corporation (AGM) preferreds, specifically series F, due to an attractive yield and relative value.AGM preferreds currently offer a yield north of 6.8%, about 2% above the 30-year Treasury, with spreads wider than historical norms.I see the recent spread as a sentiment-driven opportunity, not a sign of fundamental stress, given the farm sector's low leverage and AGM's strong loan-to-value metrics.My choice of series F was driven by higher yield, and superior liquidity. Celli07/iStock via Getty Images Introduction Until recently, I had never owned any of the Federal Agricultural Mortgage Corporation (AGM), aka Farmer Mac, preferred securities before. It was not because I had a problem with either the issuer or the securities themselves. They just never traded atThis article was written byNon-Correlating Stock Ideas2.04K FollowersFollowMy experience stems from the hedge fund industry beginning in the mid-90's, working as a Portfolio Manager, Domestic Equity Analyst and Trader. I was the Portfolio Manager of a domestic Long/Short Equity product with gross assets that peaked over 1 Billion dollars. I am a fundamental, bottoms up, value investor on long investments, and catalyst oriented short investor. I like to employ technical analysis as a balance to my fundamental work, and also as a risk management characteristic to my overall investment philosophy. I look to author articles concerning unconventional investments, and overlooked securities. I am also an investor and analyst in Cryptoassets.Analyst’s Disclosure:I/we have a beneficial long position in the shares of AGM.PR.F 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.