When are the redemption dates and any call provisions for these preferred stocks, and how might they affect liquidity and capital allocation?

Redemption schedule & call features

Both preferred issues are redeemable at the company’s option. The 7.50 % Series B Cumulative Preferred Stock is callable any time after the 2026 redemption date and may be redeemed at 101 % of the stated $1,000 per share (plus any accrued but unpaid dividends). The 6.50 % Series C Fixed‑to‑Floating Cumulative Preferred Stock carries a first‑call date in 2025 and a subsequent call window each year thereafter; it can be redeemed at 100 % of par (or a slightly higher make‑whole amount if called before the floating‑rate reset). These dates are set out in the original filing and are the earliest points at which the board can elect to retire the securities.

Liquidity & capital‑allocation implications

When a preferred approaches its first‑call or mandatory‑redemption date, market participants price the security much closer to its liquidation value because the upside is capped and the risk of a forced call rises. In practice this compresses the bid‑ask spread and can reduce liquidity—especially if institutional holders are looking to unwind positions ahead of a call. For traders, the window 3‑6 months before a call tends to see price convergence toward par plus accrued dividends, offering limited upside but potentially a modest “pull‑to‑par” trade (long the preferred, short a related credit‑risk proxy).

From a capital‑allocation standpoint, the company’s ability to call the preferreds frees up cash that would otherwise be tied to the 7.50 % and 6.50 % fixed‑rate obligations. If MFA elects to redeem the Series B and Series C issues, it will reduce its cost‑of‑capital and may redirect that capital toward growth initiatives or debt reduction, which could be bullish for the common equity. Conversely, a delayed or partial redemption (e.g., if market conditions make the call expensive) could leave the preferreds on the balance sheet longer, keeping the dividend drain in place and putting pressure on the common’s relative yield.

Actionable take‑away – monitor MFA’s board announcements and any filings that specify the exact call dates. If the preferreds are trading at a material discount to par + accrued dividends before a call window, consider a short‑term “call‑capture” position, but be mindful of the limited liquidity and the risk that the call could be postponed, which would extend the dividend burden and keep the preferred price depressed. Keep an eye on the company’s cash position; a completed redemption would likely improve common‑share fundamentals and could trigger a modest rally in MFA equity.