Annaly's (NLY -4.2%) play for CreXus (CXS -0.3%) is the start of a shift of assets away from the...

Annaly's (NLY -4.2%) play for CreXus (CXS -0.3%) is the start of a shift of assets away from the Agency MBS sector, says Citi, which wouldn't be surprised to see another bidder emerge (CXS turned down a $14 bid by Starwood in 2011). With a $130B MBS portfolio, Annaly's needle won't be moved a whole lot by CreXus' $840M in assets. For commercial REITs, Citi's favorite is STWD, in the non-Agency space, it's PennyMac (PMT).

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Comments (2)
  • REIT Analyst
    , contributor
    Comments (500) | Send Message
    PennyMac is not really a non-agency REIT, they are not focusing on non-agency RMBS but rather whole-loans and servicing rights. Now whole-loans and MSRs might be cheap, but they are not the same thing as RMBS. There's not as much selling pressure due to regulatory evolutions / general perception of a "toxic" asset.
    13 Nov 2012, 01:43 PM Reply Like
  • User 519030
    , contributor
    Comment (1) | Send Message
    EFC is another good play for non-agency RMBS
    13 Nov 2012, 04:36 PM Reply Like
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