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More from JPMorgan on MBS: The mREITs will continue to purchase agency MBS even with the Fed...
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Tuesday, November 27, 2012, 10:35 AM ETMore from JPMorgan on MBS: The mREITs will continue to purchase agency MBS even with the Fed dominating the market, says Matthew Jozoff, noting the firms weren't sellers even during the financial crisis. With their stock prices already below book value (pg. 14), the main threat to mREITs would be a termination of repo funding or a massive MBS sell-off - neither very likely according to Jozoff's team.
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This news story has 15 comments:
If you are reading these comments, then you are likely to have brain damage; like me.
The presentation is not directed at me. For sure.
The point of slide 14 is simply to say to the intended audience that the mREITs won't be buying huge amounts of MBS as they did when the (big fat spread) party was going full blast, and possibly more importantly to the intended audience, they won't spoil the (FED induced MBS price bubble) party by selling.
Capt. Brian
The Lost Navigator
About myself-I have been 100% invested in REIT's since 2007 and never had a bad year interms of a dividend stream. My portfolio has out perfomed the DJI and S&P in total return in all those years. If their is a risk, I'll take it.
Also, if you're taking part in this loose forum, you're already NOT an "average" investor.
Virtually all equity REIT and mREIT dividends are distributed as ORDINARY dividends. This type of dividend is already taxed the same as ordinary income. ORDINARY dividends do not receive any special taxation at the 15% capital gains rate -- like QUALIFIED dividends do. The only way taxation on ORDINARY dividends will change is if personal tax rates change. So, all Cramer's concerns about the raising of taxes on dividends reducing yield do not apply to REIT dividends.
All the generalizations about "dividends" just confuse people about what tax changes are likely to occur and how few folks might really be affected. Did I miss something?
Cheers
I just bought WMC yesterday. I find very little negatives about this REIT. 17% dividend, strong earnings next year, 5.6% CRP ,selling below book, buy backs and insiders buying like crazy.