New York Community Bancorp: The 9% Yielding Preferreds Seem De-Risked And Should Rally

  • New York Community Bancorp’s notes, NYCB.PR.U, currently offers a 9% yield on cost.
  • They’re trading for $33.25 per share after a January decline, driven by risks that the Steven Mnuchin-led investment and recent consumer loan sale at a gain have reduced.
  • A 34% discount to their $50 per share liquidation value represents upside to be captured on a return of investor confidence.

New York Community Bancorp (NYSE:NYCB) has two outstanding public trading fixed-income securities (NYCB.PR.U) and (NYSE:NYCB.PR.A) that have witnessed a material level of see-saw volatility on the back of the bank’s