DC Capital
Long/short equity, special situations, event-driven, arbitrage

MFA Financial: A Restructured Portfolio, Lower Effective Duration, Less Derivative Hedges, The High Yield Will Continue

Approaching the end of each year, I always enjoy evaluating the performance of my current holdings, and look for possible substitutes if need be. After doing further research, I came across several fairly diversified REITs, and the one I will be discussing in this article is MFA Financial (NYSE:MFA). MFA offers great diversification in the fixed income department, provides a high divided yield, and is extremely undervalued. MFA's management is experienced, and exhibits a high level of discipline in its portfolio approach, which can be seen through the recent restructuring and risk management strategies it employs. Additionally, the underlying assets within MFA's portfolio are positioned to provide a favorable yield to maturity based on changing economic factors that...

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