Ready Capital Corp 5.75% Senior Notes due 2026

RCC

Market cap $131M

Ready Capital trades at a 60% discount to book value, also paying out a 12% dividend yield that's not being covered by distributable earnings. RC maintains strong liquidity with $150 million in cash and $1 billion in unencumbered assets, supporting ongoing share buybacks and the common share dividend. Pending Fed rate cuts should help slim the mREIT's discount to book value, with the common equity trading at its largest ever discount.

Ready Capital reported another poor quarter with negative distributable earnings. Loans that are more than 60 days delinquent rose once again. The company borrowed more funds to buyback shares.

Ready Capital Corporation (NYSE:RC ) Q3 2025 Earnings Conference Call August 8, 2025 8:30 AM ET Company Participants Adam Zausmer - Chief Credit Officer Andrew Ahlborn - CFO & Secretary Thomas Edward Capasse - Chairman, CEO & Chief Investment Officer Conference Call Participants Christopher Whitbread Patrick Nolan - Ladenburg Thalmann & Co. Inc., Research Division Crispin Elliot Love - Piper Sandler & Co., Research Division Douglas Michael Harter - UBS Investment Bank, Research Division Jade Joseph Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division Randy Binner - B. Riley Securities, Inc., Research Division Operator Greetings.

RCC is a short-term, exchange-listed baby bond from Ready Capital, maturing in February 2026, offering an 8.5% yield to maturity. The bond's very short duration minimizes market risk, making solvency of Ready Capital the primary concern for investors. Ready Capital's latest financials show stabilized book value and a CRE portfolio focused on multi-family properties, with manageable delinquency levels.

Ready Capital Corporation (NYSE:RC ) Q1 2025 Earnings Conference Call May 9, 2025 8:30 AM ET Company Participants Thomas Edward Capasse - Chairman, Chief Executive Officer and Chief Investment Officer Andrew Ahlborn - Chief Financial Officer Adam Zausmer - Chief Credit Officer Conference Call Participants Doug Harter - UBS Crispin Love - Piper Sandler Christopher Nolan - Ladenburg Thalmann Jade Rahmani - KBW Operator Greetings. Welcome to Ready Capital's First Quarter 2025 Earnings Conference Call.

We take a look at the action in preferreds and baby bonds through the first week of March and highlight some of the key themes we are watching. Most preferreds sectors declined due to rising Treasury yields and wider spreads, reflecting weaker risk sentiment and lower equity prices. PennyMac Mortgage Investment Trust issued a new 9% 2030 bond, trading at an 8.35% yield, offering a stable book value profile.

Ready Capital's baby bonds (RCC) have a lower risk rating of 1.5 compared to the high-risk common stock, but current prices are slightly too high. Despite being a safer investment than the common stock, RCC's current risk-reward ratio isn't attractive. Better opportunities exist at present prices. The stripped yield of 8.32% for RCC is not compelling relative to other options, such as short-term Treasury ETFs with better liquidity.