Interest rates are quietly creeping higher, with the 10-year Treasury back to 2.60% after...


Interest rates are quietly creeping higher, with the 10-year Treasury back to 2.60% after threatening to hit 2.50% a few hours back. Accordingly, the mREIT sector (REM -1.2%) begins to relinquish some its big gains from yesterday. Leading on the downside are American Capital (AGNC -3.5%), Annaly (NLY -2.3%), Armour (ARR -2.3%), Invesco (IVR -1.9%), and Western Mortgage (WMC -2%). 
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Comments (11)
  • northhills24
    , contributor
    Comments (1735) | Send Message
     
    Shares of American Capital Agency Rank the Highest in Terms of Relative Performance in the Mortgage REITs Industry (AGNC, CYS, RSO, NLY, SFI)
    Fri, 07/12/2013 - 07:33
    By Robert Cotter in Fast Lane, AGNC, CYS, NLY, RSO, SFI,

     

    Below are the top five companies in the Mortgage REITs industry as measured by relative performance. This analysis was compiled based on yesterday's trading activity as we search for stocks that have the potential to outperform.

     

    American Capital Agency (NASDAQ:AGNC) ranks first with a gain of 9.23%; Cypress Sharpridge Investments (NYSE:CYS) ranks second with a gain of 5.50%; and Resource Capital (NYSE:RSO) ranks third with a gain of 5.13%.

     

    Annaly Capital Management (NYSE:NLY) follows with a gain of 4.94% and iStar Financial (NYSE:SFI) rounds out the top five with a gain of 4.87%.
    12 Jul 2013, 01:06 PM Reply Like
  • smurf
    , contributor
    Comments (6164) | Send Message
     
    Good info, North.

     

    I'm holding DX, which I like because it's a hybrid.

     

    Thanks.
    12 Jul 2013, 04:54 PM Reply Like
  • tomlos
    , contributor
    Comments (1297) | Send Message
     
    I picked up my NLY position at $12 and intend to hold for a long while. With Crexus being part of the firm now I feel good about long term prospects.
    12 Jul 2013, 01:14 PM Reply Like
  • smurf
    , contributor
    Comments (6164) | Send Message
     
    tomios,

     

    That was a good "get" at $12. So even if the stock goes nowhere, you can sit back and enjoy the dividends in the meantime. Doubtful that it will go much lower than your original cb.
    12 Jul 2013, 04:52 PM Reply Like
  • tomlos
    , contributor
    Comments (1297) | Send Message
     
    That's my thought. Originally wanted to get it at the $11.19 low, but wasn't able to for funding reasons, but I'm satisfied with $12 as my average.. Honestly, whether it's 14% dividend, 7% or 10%, still a heck of a yield to be collecting.
    13 Jul 2013, 03:49 PM Reply Like
  • hummerh25
    , contributor
    Comments (99) | Send Message
     
    Good luck, with rates rising, NLY could go the way ARR.

     

    $5. A share
    12 Jul 2013, 05:13 PM Reply Like
  • bleepingjelly
    , contributor
    Comments (570) | Send Message
     
    @hummerh25....can you elaborate in more detail?
    12 Jul 2013, 09:02 PM Reply Like
  • 67g8i32
    , contributor
    Comments (300) | Send Message
     
    ORC book value did not fall much as of june 30 2013. Wondering why are all the big name Mreits bv fall like a rock.
    13 Jul 2013, 12:35 AM Reply Like
  • Jack Rice
    , contributor
    Comments (1498) | Send Message
     
    Psychology. Investors, and even analysts, don't understand the business. Rate movement is tough on the numbers, when the mREITs must realize loses to rebalance their portfolios. If they are well-capitalized, like AGNC/MTGE, then they will abide, eventually to profit from wider spreads and negligible prepayments. But the market looks at mREITs like bond funds, apparently disregarding their core carry-trade business. So, mREITs are equal-opportunity victims of the bond panic.
    13 Jul 2013, 05:06 AM Reply Like
  • Mpac1
    , contributor
    Comments (121) | Send Message
     
    Couldn't agree more AGNC/MTGE always get the press, particularly bad news even though there are a number of well-run companies in the business. The others just don't seem to have the flamboyant factor these do. My biggest loss right now is MTGE, which I felt as a hybrid would be somewhat protected. Surprise!!

     

    I am going to wait until second quarter announcements to add to my positions and frankly have no idea what it will be.
    13 Jul 2013, 08:28 AM Reply Like
  • John Nugent
    , contributor
    Comments (9) | Send Message
     
    I purchased NLY some time ago when so many of the financial articles I read said it was a good buy. I will be the first to admit that I do not fully understand the short to long term interest spread, the quarterly revaluation, and other related information that I should be in the know on. Can anyone recommend a site for obtaining such knowledge?
    14 Jul 2013, 11:14 AM Reply Like
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