Russell Investments Australian Select Corporate Bond ETF (RCB)
CXA 
Summary
Attractive Short-Dated Bond, 8.5% YTM, From Ready Capital
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.
Short Duration Debt - The Way We Choose To Invest In Ready Capital
Ready Capital's short-duration exchange-traded senior notes, RCC and RCB, offer attractive yields of 8.6% and 9.6%, respectively, for the risk they carry. The company has faced challenges post-COVID, with a total return close to zero over the past decade and a recent dividend cut of 17%. Ready Capital's capital structure shows a relatively high debt-to-equity ratio, with recent debt increases and significant interest expenses impacting financial stability. Monitoring of performance is required.
Ready Capital Corporation (RC) Q2 2024 Earnings Call Transcript
Ready Capital Corporation (NYSE:RC ) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Andrew Ahlborn - Chief Financial Office Tom Capasse - Chief Executive Officer Adam Zausmer - Chief Credit Officer Conference Call Participants Crispin Love - Piper Sandler Douglas Harter - UBS Stephen Laws - Raymond James Jason Sabshon - KBW Christopher Nolan - Landenburg Thalmann Operator Greetings, and welcome to Ready Capital's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
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Russell Investments Australian Select Corporate Bond ETF Profile
| CXA Exchange | US Country |
Overview
Ready Capital Corporation, originally established in 2007 and headquartered in New York, New York, is a significant player in the U.S. real estate finance industry. Initially known as Sutherland Asset Management Corporation, the company underwent a rebranding in September 2018, adopting its current name to better reflect its expanded services and market reach. As a real estate investment trust (REIT), Ready Capital Corporation specializes in a comprehensive array of financing solutions, focusing primarily on small balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and investments related to these financial instruments. The organization is structured around four core segments: Loan Acquisitions, SBC Originations, SBA Originations, Acquisitions and Servicing, and Residential Mortgage Banking. This strategic segmentation allows it to cater to a diverse client base, providing tailored financing solutions across different real estate categories. By distributing at least 90% of its taxable income to stockholders, the company enjoys the status of a real estate investment trust, offering it substantial tax benefits under federal law.
Products and Services
- Loan Acquisitions:
This segment of Ready Capital focuses on acquiring both performing and non-performing small balance commercial (SBC) loans. The aim is to diversify the investment options and mitigate risks by incorporating a variety of loan performances within the portfolio.
- SBC Originations:
Ready Capital originates SBC loans that are secured by stabilized or transitional investor properties. The process involves utilizing various origination channels to ensure a broad market reach. Additionally, the company specializes in originating and servicing multi-family loan products, catering to the specific financing needs of multi-family real estate investors.
- SBA Originations, Acquisitions and Servicing:
Within this segment, Ready Capital acquires, originates, and services loans that are guaranteed by the small business administration (SBA) and are intended for owner-occupied properties. This ensures support for small businesses in need of financing solutions that come with the backing of a government guarantee, thereby reducing the risk involved for both the lender and the borrowers.
- Residential Mortgage Banking:
The company originates residential mortgage loans through a variety of channels, including retail, correspondent, and broker. This versatility in loan origination methods allows Ready Capital to reach a wide demographic of borrowers, catering to their varied needs in securing home financing.
