Seeking Alpha

Middling rally in mREITs as rates drop

  • It's a big dip in interest rates today (the 10-year yield off 8 bps to 2.88%), but buyers are doing little more than tiptoeing back into beaten-down mortgage REITs.
  • Leading are Annaly (NLY +1.3%) and American Capital (AGNC +1.4%), (MTGE +1.1%), and Armour (ARR +0.7%), CYS Investments (CYS +1.2%), and Invesco (IVR +1.1%) are also posting decent gains. All are quietly up in the area of 5-10% off of their 52-week lows set late last year.
  • Related ETFs: REM, MORT, MORL
Comments (9)
  • Tucker Leppa
    , contributor
    Comments (343) | Send Message
     
    Typical no mention of (PMT).
    10 Jan 2014, 11:28 AM Reply Like
  • mogman
    , contributor
    Comments (26) | Send Message
     
    PMT has done very nicely and should be on the list. Elsewhere, seems the general media is still most uncomfortable with admitting that the labor went down to 6.7% unemployment because nearly a more realistic number is near 16% totally unemployed, by comparison to those who had jobs 6 years ago. I might be off by a percentage point or a year or so but you get the drift. AGNC, NLY and others have made sane modifications but the news media persists in running in a tunnel of denial. In the mean time the mREITs will slowly claw back and justify the long hold.
    10 Jan 2014, 11:45 AM Reply Like
  • GregGrahamHere
    , contributor
    Comments (54) | Send Message
     
    The market is flip flopping all over the place based on fast taper, slow taper, stop the taper, etc...

     

    We finally had gotten back to where good news was good for the market and bad news was bad for the market. Now, here we go again, back to bad news (ie, a lousy jobs report) is good news for the market (because the Fed can't possibly taper very much with this kind of number).

     

    And since the Fed will now only taper real slow, that's good news for the mREITS.

     

    Make up your minds already........lol
    10 Jan 2014, 02:47 PM Reply Like
  • Worn out 123
    , contributor
    Comments (436) | Send Message
     
    There is no good news for mReits. Only hopes. The political turmoil, the unemployment, the higher taxes on Medicare and the ACA continue to be a drag the economy. The presidential mantra, "You didn't build" that has been received by the gimmie generation as "free ride for all who vote for my party" and rightly so as that was his intention in so saying.
    Whenever Killary takes hold of the reins it will already be too late to do anything, other than house and feed the people that have been supporting the so-called "liberal" agenda.
    From a traders standpoint it's time to go to cash. Perhaps buy another currency, but, definitely get out of IRAs and 401Ks as they will be raided first by our liberal office holders, both democratic and republican. That will be the days of reckoning for mREITS with no profits and unable to pay the interest on their debts, IMO. Maybe a trader could try precious metals??
    13 Jan 2014, 02:09 PM Reply Like
  • GEOESQ
    , contributor
    Comments (22) | Send Message
     
    THIS RECESSION IS NOT OVER!
    11 Jan 2014, 07:49 AM Reply Like
  • tstreet
    , contributor
    Comments (907) | Send Message
     
    I agree that the recession is not over and I think that people should begin to realize that there are structural problems with our economy preventing the economy from ever recovering.
    11 Jan 2014, 11:39 AM Reply Like
  • Worn out 123
    , contributor
    Comments (436) | Send Message
     
    It's only just begun!
    13 Jan 2014, 02:11 PM Reply Like
  • bullthurman
    , contributor
    Comments (3) | Send Message
     
    Fear and Greed....Greed and Fear . Interest rates are still in the toilet and mortgage REITS are down in book value by 30 % from their April 2013 high levels . Seems that FEAR still rules the REIT stocks book values . AGNC quarterly dividend per share is down to $0.65 from $1.20 from a year ago . These stocks are beaten down so far that they are an excellent buy right now but FEAR is still keeping the buyers from jumping in . At some point in time GREED will trump FEAR and book values will begin to rise . " Buy low and sell high " has always been my guide . Now is a good time to get more NLY and AGNC while the book values are low .
    13 Jan 2014, 12:00 AM Reply Like
  • Tucker Leppa
    , contributor
    Comments (343) | Send Message
     
    I like both CYS and ANH over AGNC and NLY.
    13 Jan 2014, 05:48 AM Reply Like
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