{"data":{"id":"sw_cbad9df1ad2215c51f82","slug":"compass-diversified-series-b-preferred-shows-16-24-yield-to-call-at-11-discount","title":"Compass Diversified Series B Preferred Shows 16.24% Yield to Call at 11% Discount to Par","subheadline":"CODI'B trades well below face value even as its yield to call outpaces peers, with its discount still narrower than the group average.","summary":"Compass Diversified's variable-rate Series B preferred (CODI'B) trades at an 11.32% discount to par with a 16.24% yield to call, a gap smaller than its peer group's average 24.1% discount.","body":"Compass Diversified Holdings' Series B cumulative preferred shares, traded under the ticker CODI'B, closed at $22.17 on October 22, 2026, a level that puts the security roughly 11.32% below its $25 liquidation preference. At that price, the shares carry a yield to call of 16.24% against an April 30, 2028 call date, alongside a current yield of 8.88% based on an annual dividend of $1.9688 per share.\n\nThe pricing gap first stood out in data tracked on Preferred Stock AI, a Madison Labs research site, which groups CODI'B among four Compass Diversified preferred issues trading at an average discount to par of 24.1% and an average current yield of 10.84%. Measured against that peer set, CODI'B's 11.3% discount is notably narrower, even as its 16.24% yield to call remains elevated relative to the 8.88% current yield investors collect while holding the shares.\n\nThe divergence between current yield and yield to call is a function of structure rather than sentiment. CODI'B is a variable-rate instrument, with its dividend rate currently set at 7.88% following an initial 7.875% rate, and it floats at three-month LIBOR plus 4.985% once the fixed period ends. Because the stock trades below its $25 par value, any redemption at the call date would deliver capital appreciation on top of the dividend stream, which is the mechanical reason the yield-to-call figure runs well above the current yield. The shares are cumulative, meaning any missed dividends must be paid before common distributions resume, and they remain callable, perpetual, and non-convertible, according to the original 2018 prospectus filed with the SEC.\n\nFor income-focused investors, the setup illustrates a familiar preferred-market dynamic: a security priced below par embeds a form of optionality tied to whether and when the issuer calls it. If Compass Diversified redeems CODI'B at the 2028 call date, holders who bought below $25 would capture both the dividend income and the price appreciation back to par, the source of the 16.24% yield-to-call figure. If the shares are not called, investors continue to collect the floating dividend at whatever rate the LIBOR-based formula produces, with no guarantee of price recovery to par. Neither outcome is assured, and the gap between current yield and yield to call should be read as a reflection of that uncertainty rather than a forecast.\n\nCompass Diversified Holdings is a Delaware statutory trust formed in 2005 that holds controlling stakes in middle-market businesses spanning industrial, branded consumer, and healthcare sectors, with a portfolio that has included names such as 5.11 Tactical, BOA Technology, Ergobaby, and The Sterno Group. The trust has deployed more than $7 billion in capital across over 23 platform acquisitions since inception. CODI'B was issued in March 2018 as part of a 4,000,000-share offering (plus a 600,000-share overallotment), with proceeds directed toward revolving credit facility repayment and general corporate purposes. The company also has Series A preferred shares outstanding with a 7.250% coupon and a Series C issue, giving it a multi-tranche preferred capital structure.\n\nCODI'B's 52-week range runs from $15.55 to $22.88, meaning the current $22.17 level sits toward the upper end of that band even as it remains below par. The trust's common shares, which are far more volatile at a 52-week range of $4.58 to $13.25, closed at $10.32 on the same session, up 0.39% on the day. Compass Diversified reported its most recent quarterly distributions on Series A, B, and C preferred shares in early October, and the company has scheduled its third-quarter 2026 earnings call, a near-term event that could shape how the market weighs the preferred's discount relative to its historical pattern.\n\nBroader fixed-income and credit markets have been navigating a volatile stretch, with oil prices pushing toward multi-month highs and renewed geopolitical tensions weighing on risk sentiment across asset classes, a backdrop that can influence how investors price call risk and discount persistence in preferred securities generally. Market participants watching CODI'B will likely focus on the company's upcoming earnings disclosures, any commentary on capital allocation toward preferred redemptions, and how the floating-rate dividend formula behaves as benchmark rates evolve, all of which could influence whether the current discount to par narrows toward the issue's own history or persists alongside the wider group average.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"Data Story","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":88,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/CODI-P-B","featured_image":null,"published_at":"2026-10-23T11:27:16.397861+00:00","updated_at":"2026-10-23T11:27:16.397861+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}