Merchants Bancorp: Series E Provides A Solid Risk-Return Tradeoff
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Pearl Gray Equity and Research4.74K FollowersFollow5ShareSavePlay(8min)CommentsSummaryMerchants Bancorp 7.625 PFD SE E has a current yield above 8% and trades below liquidation value.The bank's fundamentals are robust, as funding liquidity risk remains low. Revenue is generated from mortgage-based activities, which I deem favorable, given the current rate environment.The bank's capital structure hasn't shown signs of strain. However, key risks include a 27% chunk of uninsured deposits and regional banks' lack of access to certain funding sources. benedek/iStock via Getty Images Various regional banks have enjoyed a stellar 2025. However, Merchants Bancorp (MBIN) hasn't delivered any notable gains. In fact, most of its capital structure has struggled for momentum, since the turn of the year. I looked at the bank's listingsThis article was written byPearl Gray Equity and Research4.74K FollowersFollowPearl Gray is a proprietary investment fund and independent market research firm. We primarily focus on Fixed-Income and Capital Flows. However, our Seeking Alpha readers can expect a cross-asset blend, extending to analysis of equity REITs (including Preferred Shares), Investment Fund Appraisal, and Bank Risk Analysis.Kindly note that our published content is dispensed as Independent Analysis and Doesn't Constitute Financial Advice. For any content-related concerns, contact Steve Booyens, CFA or leave a message in the comments section.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. Kindly note that our content on Seeking Alpha and other platforms doesn't constitute financial advice. Instead, we set the tone for a discussion panel among subscribers. As such, we encourage you to consult a registered financial advisor before committing capital to financial instruments.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.