SueMyAdvisor's  Instablog

Send Message
The Securities Law Firm of Menzer & Hill, P.A., is a nationally known securities law firm representing clients nationwide in securities fraud, securities arbitration and securities litigation matters. Our securities attorneys’ focus is representing investors nationwide that have lost money due... More
My company:
Menzer & Hill, P.A.
  • American Capital Agency & American Capital Mortgage REIT Losses 0 comments
    Jun 5, 2013 3:35 PM

    The Securities Law Firm of Menzer & Hill, P.A., is currently investigating those Broker Dealers that recommended their clients invest in mortgage REITs, specifically, American Capital Agency and American Capital Mortgage. Both companies announced significant losses for the first quarter. American Capital Mortgage lost $0.56 per share and American Capital Agency lost $1.57 per share.

    The losses are attributable to increased interest rates and a drop in mortgage-backed securities values. REITs such as American Capital Agency and American Capital Mortgage contain substantial risks in which most investors are unaware of. Under FINRA rules and regulations, Broker Dealers may be held liable for losses incurred by their clients if they failed to accurately represent the true risks. Many Broker Dealers continue to solicit these REIT products to their clients because they are some of the highest commissioned products the Broker Dealer offers.

    Many REITs like American Capital Agency and American Capital Mortgage are significantly leveraged which in itself makes them extremely risky investments. Furthermore, the dividends many of the REITs pay are actually the return of investor capital, as the properties don't always generate enough return to cover the dividend payments.

    Contact a Securities Attorney if you incurred losses in either the American Capital Agency or American Capital Mortgage REITs.

Back To SueMyAdvisor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments

Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.