Re: NRZ's first preferred shares - priced
Correct me if I'm wrong, but isn't it effectively paying around 12%? I'm somewhat new to investing so I'm just curious. This preferred stock offering contains a redemption price of $25/share, thus $25 should act as a "top" on the price/share. Inherently, the stock should trade lower than that in terms of share price. While you would expect this PS to trade at a higher price/share than the common, as it is preferred, it may be fairly close in price per share as the dividend payout is only a little smaller than the common ($1.875/share). Thus, I wouldn't be surprised to see this trade pretty close to the common shares (5-10%) for a while.
Am I totally wrong with my logic here? I think if you wait a while you could scoop up the preferred shares at a significant discount to where they're being sold now, but maybe I'm way off base?