PMTU

We take a look at the action in preferreds and baby bonds through the third week of August and highlight some of the key themes we are watching. Preferreds credit spreads remain tight, but median yield-to-worst has risen as long-term rates increase, favoring fixed-rate over floating-rate preferreds in some cases. The Ninth Circuit ruled in favor of PennyMac Mortgage Investment Trust, allowing fixed coupons on LIBOR Fix/Floating preferreds post-LIBOR cessation.