The real estate investment trust also may use the funds raised for general corporate purposes. Underwriters have the option to purchase up to $9 million more notes for 30 days with closing expected to occur Friday.

Joint book-running managers for the offering are Morgan Stanley, RBC Capital Markets, UBS, Wells Fargo, Piper Sandler, and Keefe, Bruyette & Woods.

Cash payments will be every three months on the first day of January, April, July, and October starting this fall. The company, a mortgage investor with property management and servicing expertise, can engage in partial or full redemptions after July 1, 2026.

Single-family credit and agency assets have constituted 70% of NYMT's capital allocation, at 53% and 17%, respectively. One-fourth of the remaining allocation has been devoted to multifamily, with a 5% share going to cash and other assets.

The company acquired $306 million in residential loans in the first quarter and $298 million in residential agency securitizations collateralized by business purpose, bridge or rental loans.

It also issued a $276 million rated securitization of performing and reperforming residential mortgages in the quarter and a $225 million revolving transaction backed by business purpose loans.

NYMT's stock was trading at a little above $6 per share at the time of this writing Wednesday morning and was down slightly on the day. The company recorded a $57.9 million loss and $29.9 million revenue during the first quarter, according to Google Finance.

Other nonbanks engaging in debt market activity this month have included mortgage REIT Redwood Trust and Loandepot, a lender and servicer.

Redwood in mid-June priced $85 million in 9% notes due 2029 for purposes that included residential mortgage-backed securities investments.

Loandepot, in line with a nondepository lending trend toward lengthening debt maturities in a low origination environment, extended $497 million in 6.5% senior notes originally due next year out to 2027 at a 8.25% rate.

Large nonbanks first became more notably active in the unsecured debt market in the third quarter of last year, when Fitch noted in a report that three large players returned to it for the first time since 2021: Mr. Cooper, Freedom Mortgage and Pennymac.

"Unsecured debt is more stable and isn't subject to margin calls if we have a significant interest rate rally, for example. So it has some benefits on that side," Dan Perotti, Pennymac's chief financial officer, noted in the company's fourth-quarter 2023 earnings call. 

"We think it can drive down the costs over time as we move toward unsecured debt that has a more favorable sort of ratings and capital profile stability," he added.

Pennymac's upsized $750 debt offering of notes due 2029 in December of last year had a 7.875% note rate. Last month, it conducted a private offering of $650 million in 7.125% notes due 2030 to pay down debt from other sources like revolving mortgage-servicing rights facilities.