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Highlights from mortgage REIT roundtable

  • Mortgage REIT fans will be interested in this transcript of a roundtable yesterday led by JPMorgan analyst Matt Jozoff, and including executives from Apollo Residential (AMTG -1.9%), Annaly (NLY -2.4%), MFA Financial, Invesco (IVR -2.5%), and Two Harbors (TWO -1.6%). At a minimum, it makes clear - for those who would lump the sector together - the significant differences in investment approaches and assets held.
  • As tipped off during his company's earnings call a few days back, David Finkelstein - head of agency MBS trading at Annaly - sounds the most bullish: "Technicals over the near-term are relatively supportive of MBS, and we also believe that even beyond the Fed’s departure from being a - or from adding to their portfolio, we think that the landscape will still be favorable to MBS due to relatively low volatility the fact that we will not have a significant portion of the MBS market actively hedging their portfolio, which should reduce volatility day to day."
  • MFA CEO William Gorin doesn't want any part of long-dated agency MBS: "We came into the year owning zero 30-year agency paper ... which we are happy with. When you are competing with a non economic, non profit maximizing competitor in the space [the Fed] ... we’ve decided not to be in that space."
  • Related ETFs: REM, MORT, MORL
Comments (2)
  • tom bernardi
    , contributor
    Comments (98) | Send Message
     
    good reason to diversify into REM
    8 Mar, 11:07 AM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    I am "in that space" Mr. Gorin. In, and proud, and short. And thanks for all the dividends on my MFA stock. Your management and foresight, and that of your predecessor, has been superb.
    10 Mar, 03:12 PM Reply Like
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