Finally Using My Cash For Big Yields

Core Insights - The article discusses the current investment landscape for mortgage REITs and BDCs, highlighting opportunities in floating-rate preferred shares and baby bonds due to recent market volatility and interest rate changes [20][21][33] Mortgage REITs and BDCs - A comparison of common shares from various mortgage REITs and BDCs is provided, indicating a range of performance metrics and price movements [3][4] - Many mortgage REITs have seen declines of 15% to 18% from their 52-week highs, while BDCs have experienced even larger drops [30] Preferred Shares - Floating-rate preferred shares are currently trading at discounts to call value, with potential for higher dividends as credit spreads widen [21][25] - Specific preferred shares like NLY-I and NLY-F are highlighted for their appealing yields, with NLY-I offering about 9.15% [23][24] Baby Bonds - Baby bonds are noted for their lower volatility and attractive yields to maturity, with some offering yields around 10% [26] - The maturity timelines of baby bonds are relatively short, which helps mitigate price fluctuations in response to rising Treasury yields [26] Market Sentiment - The article reflects a shift in market sentiment, with a previous wall of bearish ratings giving way to more attractive valuations in the BDC sector [33][34] - The current environment is seen as an opportunity for investors to find value in sectors that were previously overlooked due to risk aversion [35][36]