Week ended 08/26/16

In the wake of the ex-dividend date for Rait preferreds, pricing is all over the place which has created a sort of arbitrage opportunity; specifically, RAS-A has become much better than RAS-B. This week I switched the 2CHYP portfolio to include RAS-A instead of RAS-B. Essentially, these are pari-passu securities with the exact same risk parameters yet the RAS-A has slightly higher yield and about $1.80 more of capital appreciation potential in the event of redemption or liquidation.

2CHYP Portfolio Snapshot

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