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- 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 2024 headwinds. In moves that reignited the specters of the 2023 banking crisis, NYCB’s common shares would shed half more than half their value on the release of its fiscal 2023 fourth-quarter earnings that saw a jump in loan loss provisions almost 10x as much as consensus estimates. The bank would compound the pain with a February market disclosure that it would delay its 10-K filing and that it had identified material weaknesses in its internal controls for reviewing loans.
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