Josh Arnold
Long/short equity

AG Mortgage Investment Trust: A Deceptively Dangerous 19% Yield

AG Mortgage Investment Trust (NYSE:MITT) is a REIT that focuses on investing, acquiring and managing a vast portfolio of various financial assets. Among those financial assets are residential mortgage backed securities from the government sponsored entities, commercial mortgage loans, residential mortgage loans and commercial mortgage back securities, among others. The company had assets on its balance sheet of $4.9 billion at the end of the first quarter. In addition, the stock currently pays a $3.20 dividend annually in quarterly installments giving it a current dividend yield of 19%. This article will argue that MITT's business model is a money loser in a rising rate environment, such as the one we find ourselves in, and that shares should be...

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