Seeking Alpha

Gundlach reiterates bullish MBS call

  • Rising interest rates have killed refinancing - eliminating prepayment risk - and home prices continue to move higher, a particularly bullish cocktail for non-agency MBS, says Gundlach (DBL, DSL), who finds those securities vastly more attractive than high-yield paper (HYG, JNK).
  • Asked about Annaly (NLY) - an owner of agency MBS - Gundlach says he likes it and likes its management, but won't be buyer until after the dividend is cut to something more in line with what core earnings might be.
  • "Something for Nothing" slides and webcast
  • Non-agency MBS players include: MTGE, MFA, DX, TWO
  • Related mREIT ETFs: REM, MORT, MORL
  • High-yield ETFs: HYG, JNK, HYS, HYLD, SJNK, PHB, SJB, ANGL, XOVR, UJB, QLTC, SHYG
  • Previous: "Freaking out" about interest rate risk
Comments (3)
  • Forget NLY. Buy MTGE, MITT, TWO The dividend will stay the same for MTGE and it has already stayed the same for MITT. Who knows.. maybe TWO will maintain too lol.
    10 Dec 2013, 06:23 PM Reply Like
  • lets 's not forget NYMT,one of the few mortgage reits trading above
    book value,and just kept it's .27 dividend the same
    also mitt preferred A is way oversold
    10 Dec 2013, 06:32 PM Reply Like
  • load up on MFA before it's to late! up up and away!
    10 Dec 2013, 08:52 PM Reply Like
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