Mortgage-backed securities caused a major financial crisis three years ago. The low-rate environment that followed the bursting of the Internet bubble, combined with lax mortgage practices by a historically strict group, fueled the ballistic rise of MBSs. Their consequent collapse brought down almost everything else, including interest rates. Now, the companies that hold these securitized mortgages occupy the highest yielding corner of the market U.S. equity markets.
There are many REITs that manage portfolios of these securitized mortgages. These mREITs have recently been hit by a series of fears beyond the concern that foreclosures will continue for the coming years and that housing prices may continue to drop. These businesses were especially sensitive to the debt-ceiling crisis within July. More recently, new regulatory risks have emerged, including those dealing with their tax status and leverage usage. The following is a review of the short-term performance of 7 high-yielding mREITs that have reasonably large trading volumes. I have provided their present yields, as well as their 5-day, 1-month and 2011-to-date performances. American Capital Agency (AGNC)
No comments:
Post a Comment