Two Harbors (TWO +0.1%) tops Credit Suisse's list of mREITs (REM) to own given the new rate...

|About: Two Harbors Investment C... (TWO)|By:, SA News Editor

Two Harbors (TWO +0.1%) tops Credit Suisse's list of mREITs (REM) to own given the new rate environment - considerably more favorable now that the yield curve has steepened. Hybrids in general offer better risk/reward than agency-only names, says CS, which also likes Ellington Financial (EFC is a partnership, not a REIT, but EARN is a REIT and is run by the same team). The analysts also like the specialized business models at Newcastle (NCT), New Residential (NRZ), and PennyMac (PMT).