Invest1 publisher2 min readPublished
Tendering Two Harbors' TWOD pays about 6 cents a share more than selling before the Oct 2 cutoff
Two Harbors' TWOD holders who tender after the CrossCountry Mortgage buyout can expect about $26.3841 a share, roughly 6 cents above the likely sale price. Once a seller's cash earns two weeks of Treasury-bill yield, the edge shrinks to under 3 cents, so the dates matter more than the price.
The Investor · Invest desk
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What happened
- Holders can sell TWOD in the market through the close of trading on Friday, Oct 2, 2026, according to the Two Harbors announcement.
- Schwab accepts tender elections until 7 p.m. Eastern on Oct 9, and other brokers may set different deadlines and processes.
- Tender proceeds are expected to arrive around Oct 15, though the exact date may depend on the holder's broker.
- Measured against a $26.32 sale on Sept 30, the tender's extra payout annualizes to 6.10%, or 5.12% if the sale price is $26.33.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
- cost Waiting for tender cash gives up about 58% to 62% of the gross premium in T-bill income a seller would have earned, on the author's own position.
- exposure Each account needs its own election, so one mistyped share count can leave most of a holder's position untendered.
- exposure Holders at other brokers have to look up their own cutoff and process; a deadline earlier than Schwab's leaves less time to tender once the sale window shuts.
The $26.3841 is $26.00 under the offer plus $0.3841 of accrued interest, according to a holders' guide published on Seeking Alpha [4]. The guide's author expects a market sale to fetch at least $26.31 and perhaps $26.32 [7]. Against a $26.32 sale, the gap is $0.0641 a share [8], or about 0.24% of the price [1]. The 6.10% annualized figure is that quarter of a percent earned over roughly two weeks and scaled up to a year [9][1]. "So tendering shares produces a higher return over the next two weeks than owning a Treasury bill ETF," the author wrote. "But the actual value is very small." [10]
On the author's 3,363 shares, the gross premium is $215.57 [8]. A sale frees the cash sooner for a T-bill ETF or a money market fund [19], and at $26.32 those proceeds would earn about $125.23 to $134.01 over the wait [11]. Net of that, tendering adds $81.55 to $90.34 [12]. Per share, the net edge is about 2.4 to 2.7 cents (81.55 and 90.34 divided by 3,363) [2]. The author is tendering anyway [8]. "Is that worth the time for me to click through the menus? Probably," the author wrote [18].
The guide was written for readers who bought on the author's advice. "I have a duty to help those investors close their positions," the author wrote, after encouraging investors to load up on TWOD quite a while back [17]. On the effort itself: "Is it worth the time to prepare this guide? Definitely not." [13]
A two-cent edge is small enough for a fee to erase. Some brokers may charge for making an election, and the author wrote that a material fee makes selling more appealing [14]. At 2.4 to 2.7 cents a share, a 1,000-share holder nets about $24 to $27 by tendering [3]. Any election fee above that makes the market sale the better exit.
Holders still deciding can sell near $26.32, tender for about $26.3841 paid later, or miss both and land in the route the author calls the worst choice [7][4][3]. The guide's text ends before explaining what that third route pays, or when. I think the sell-or-tender decision is worth a couple of cents a share, and the one mistake with real money attached is missing both dates. That view is wrong if a holder who does nothing is paid the same $26.3841 on a similar timetable [4].
What to watch
- TWOD's closing prices through the Oct 2 cutoff: a sale above $26.33 pushes the tender's annualized edge below the author's 5.12% figure.
- Whether tender proceeds actually post on Oct 15; a later payout spreads the same $0.0641 premium over more days.
- What Two Harbors or brokers say a holder who neither sells nor tenders will receive, and on what date.