Seeking Alpha

Non-agency MBS continue to power forward, helped by an improving housing market, but also by...

Non-agency MBS continue to power forward, helped by an improving housing market, but also by shrinking supply. Peaking at $2.2T in 2007, the market has shrunk to just $986B today (and an expected $750B in 2014) as principal gets paid down with little to no new origination. "The risk premium on non-agency mortgages is expected to diminish," says Amherst Securities.
Comments (8)
  • CIM and the whole mReit sector should be a good place to park some portfolio $$
    28 Sep 2012, 03:38 PM Reply Like
  • King, i agree with you 100%... With Bernanke continuing with an unlimited QE3 and with him keeping interest rates near "0" thru 2015 the mREIT sector will do just fine...
    28 Sep 2012, 04:11 PM Reply Like
  • Not necessarily. Look what ANH just did. I'll sell it after x-div date. I sold HTS and CMO today for the same reason. Most mReits are good but there are a few dawgs in the bunch.
    28 Sep 2012, 05:25 PM Reply Like
  • Too good to be true? ususally is.
    Watch out
    Just keep an eye on things this is a strange world, and gettin' stranger.
    Capt. Brian
    The Lost Navigator
    28 Sep 2012, 09:27 PM Reply Like
  • We know that mReits require ones constant attn to detail.
    but the sector, while it may suffer through some spread contraction should do better than the other sectors for the next couple years.
    However as mac noted there are and always will be under performers.
    29 Sep 2012, 01:16 PM Reply Like
  • I got out,, cim has too many surprises, I think there will be a up coming delisting, paperwork not in order,, too many firms still cook the book, they are holding on to straws with the promise to hold the current div. ,, but anything can change if they no longer have funds to pay div. We see it everyday here today done next day. like a overnight letter. buyer beware...
    1 Oct 2012, 12:21 AM Reply Like
  • ZAK one question, who did you post as before creating this persona?
    2 Oct 2012, 01:34 PM Reply Like
  • I got out of both CIM and NLY a couple of months ago because of all the negative stories. Glad I did. Took those proceeds to buy AMTG. Thinking about selling most of my ANH holdings after Ex and moving more to AMTG and maybe back to PSEC again. Trying to stick with those that have been out performing the S&P. Probably should have listened to the ANH rumblings in mid-July and got out then. My avg cost is $6.44
    4 Oct 2012, 01:17 PM Reply Like
DJIA (DIA) S&P 500 (SPY)