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Daily Stock Analysis– Mortgage-backed REITs, high dividends, and potential perils
Manage episode 286967605 series 2852122
REITs or real estate investment trusts have been around since 1960. REITs allow investors to invest in real estate without direct ownership. This investment vehicle can be simple or incredibly complicated. Many people are attracted to the high current dividends. There can also be an illusion of safety because the mortgages used in some REITs are back by the US Government. In today's show, I discuss the opportunities REITs offer. Plus, I discuss the downside too. Investors can learn a lot from the market crash in mortgage-backed REITs that began with the Coronavirus market crash between February and March of 2020. Some mREITs have not rebounded.
Today's discussion includes Annaly Capital Management, Starwood Property Trust, AGNC Investment Corp., Two Harbors Investment, and PennyMac Mortgage Investment Trust.
Listen, learn, & subscribe
This information is for educational purposes only. Not an offer to buy or sell any stock or an offer of advice.
References from today's show:
Mortgage Firm Struggles to Meet Margin Calls as Market Turmoil Continues https://www.wsj.com/articles/mortgage-firm-struggles-to-meet-margin-calls-as-market-turmoil-continues-11584975633
Mortgage REITs Come Under Stress That Even the Fed Might Not Be Able to Ease
Basics of Fannie Mae Single-Family MBS https://capitalmarkets.fanniemae.com/media/4271/display
Freddie Mac—Federal Home Loan Mortgage Corp. (FHLMC) https://www.investopedia.com/terms/f/freddiemac.asp
The Inverse Relationship Between Interest Rates and Bond Prices https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/
Two Harbors Investments Corp. Fourth Quarter 2020 Earnings Call https://s24.q4cdn.com/261832436/files/doc_financials/2020/q4/TWO-Q4-2020-Earnings-Call-Presentation-Final.pdf
How Risky Is AGNC Investment Corp.'s Dividend? https://www.fool.com/investing/2021/02/17/how-risky-is-agnc-investment-corps-dividend/#:~:text=AGNC%20cut%20its%20monthly%20payout%20from%20$0.15%20per,conference%20call%20that%20the%20dividend%20cut%20was%20%22unnecessary.%22
Capital Destruction, Inc. A look at mortgage REITs. https://www.morningstar.com/articles/641458/capital-destruction-inc
Two Harbors Investment Sees Unusually Large Options Volume https://www.marketbeat.com/instant-alerts/nyse-two-options-data-report-2021-02/
Commercial Properties' Ability to Repay Mortgages Was Overstated, Study Finds https://www.wsj.com/articles/commercial-properties-ability-to-repay-mortgages-was-overstated-study-finds-11597152211
28 episodes
Manage episode 286967605 series 2852122
REITs or real estate investment trusts have been around since 1960. REITs allow investors to invest in real estate without direct ownership. This investment vehicle can be simple or incredibly complicated. Many people are attracted to the high current dividends. There can also be an illusion of safety because the mortgages used in some REITs are back by the US Government. In today's show, I discuss the opportunities REITs offer. Plus, I discuss the downside too. Investors can learn a lot from the market crash in mortgage-backed REITs that began with the Coronavirus market crash between February and March of 2020. Some mREITs have not rebounded.
Today's discussion includes Annaly Capital Management, Starwood Property Trust, AGNC Investment Corp., Two Harbors Investment, and PennyMac Mortgage Investment Trust.
Listen, learn, & subscribe
This information is for educational purposes only. Not an offer to buy or sell any stock or an offer of advice.
References from today's show:
Mortgage Firm Struggles to Meet Margin Calls as Market Turmoil Continues https://www.wsj.com/articles/mortgage-firm-struggles-to-meet-margin-calls-as-market-turmoil-continues-11584975633
Mortgage REITs Come Under Stress That Even the Fed Might Not Be Able to Ease
Basics of Fannie Mae Single-Family MBS https://capitalmarkets.fanniemae.com/media/4271/display
Freddie Mac—Federal Home Loan Mortgage Corp. (FHLMC) https://www.investopedia.com/terms/f/freddiemac.asp
The Inverse Relationship Between Interest Rates and Bond Prices https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/
Two Harbors Investments Corp. Fourth Quarter 2020 Earnings Call https://s24.q4cdn.com/261832436/files/doc_financials/2020/q4/TWO-Q4-2020-Earnings-Call-Presentation-Final.pdf
How Risky Is AGNC Investment Corp.'s Dividend? https://www.fool.com/investing/2021/02/17/how-risky-is-agnc-investment-corps-dividend/#:~:text=AGNC%20cut%20its%20monthly%20payout%20from%20$0.15%20per,conference%20call%20that%20the%20dividend%20cut%20was%20%22unnecessary.%22
Capital Destruction, Inc. A look at mortgage REITs. https://www.morningstar.com/articles/641458/capital-destruction-inc
Two Harbors Investment Sees Unusually Large Options Volume https://www.marketbeat.com/instant-alerts/nyse-two-options-data-report-2021-02/
Commercial Properties' Ability to Repay Mortgages Was Overstated, Study Finds https://www.wsj.com/articles/commercial-properties-ability-to-repay-mortgages-was-overstated-study-finds-11597152211
28 episodes
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