Ready Capital Corp 9.00% Senior Notes due 2029

RCD

Market cap $112M

Ready Capital Corporation continues to see accelerating book value destruction, with Q4-2025 losses and deteriorating credit metrics undermining any investment case. RC's liabilities-to-equity ratio has worsened (3.7x), net interest margins remain deeply negative, and non-accruals in both core and non-core portfolios have surged. Management projects $500 million in free cash flow by year-end via asset sales and runoff, aiming to address major debt maturities, but execution risk remains high.

Ready Capital Corporation (RC) Q4 2025 Earnings Call Transcript

Ready Capital Corporation (RC) Q2 2025 Earnings Call Transcript

Ready Capital continues to face severe challenges. The leverage and rising delinquencies have already destroyed tons of tangible equity. RC remains suitable only for traders seeking short-term bounces, not long-term investors focused on capital preservation or yield stability.

Ready Capital Corporation ( RC ) Q3 2025 Earnings Call November 7, 2025 8:30 AM EST Company Participants Andrew Ahlborn - CFO & Secretary Thomas Capasse - Chairman, CEO & Chief Investment Officer Conference Call Participants Douglas Harter - UBS Investment Bank, Research Division Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division Christopher Nolan - Ladenburg Thalmann & Co. Inc., Research Division Presentation Operator Greetings, and welcome to the Ready Capital Third Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

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.

Mortgage REITs have endured many rough quarters. They are not the only choice for big yields. We will cover a few alternatives that offer big yields with less risk.

I've been accumulating RC's 6.50% Series E Preferreds, amid a significant year-to-date selloff. They're trading for 62 cents on the dollar and offer a 10.5% dividend yield. RC common shares are down 40% year-to-date, while the E preferreds have dipped 16%. I think the selloff is overdone and the preferreds provide a compelling risk-to-reward profile at their current level.

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 Corporation's 9.00% Senior Notes due 2029 carry high risk due to poor management and significant equity value destruction over the past decade. Despite the attractive 9% coupon, RCD's high duration and default risk make it an unfavorable investment compared to more stable alternatives. The company's common equity has plunged over 20% year-to-date, and a class action suit further questions management's competence and solvency.