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More from JPMorgan on MBS: The mREITs will continue to purchase agency MBS even with the Fed...

More from JPMorgan on MBS: The mREITs will continue to purchase agency MBS even with the Fed dominating the market, says Matthew Jozoff, noting the firms weren't sellers even during the financial crisis. With their stock prices already below book value (pg. 14), the main threat to mREITs would be a termination of repo funding or a massive MBS sell-off - neither very likely according to Jozoff's team.
Comments (15)
  • Translation: All ahead full on MREIT investment.
    27 Nov 2012, 11:10 AM Reply Like
  • I tried to follow the information on "page 14" above and my head started spinning. I wonder who this information is directed towards? Certainly not the average investor.
    27 Nov 2012, 11:26 AM Reply Like
  • This is for institutional investors who trade agency MBS, so not the average investor.
    27 Nov 2012, 12:04 PM Reply Like
  • Page 14 is the information on the individual mREITs, its statistics on what they own and where their stock is trading in relation to book value.
    27 Nov 2012, 02:32 PM Reply Like
  • Slide 24 says it all......
    27 Nov 2012, 11:58 AM Reply Like
  • Uplifting music to my ears
    27 Nov 2012, 01:06 PM Reply Like
  • There are no average investors.


    If you are reading these comments, then you are likely to have brain damage; like me.


    The presentation is not directed at me. For sure.


    The point of slide 14 is simply to say to the intended audience that the mREITs won't be buying huge amounts of MBS as they did when the (big fat spread) party was going full blast, and possibly more importantly to the intended audience, they won't spoil the (FED induced MBS price bubble) party by selling.
    27 Nov 2012, 03:18 PM Reply Like
  • HEY, you need the book I just wrote: Brain Surgery Self Taught, or, Suture Self. lol, join the crowd, Brain management school will begin ASAP.


    Capt. Brian
    The Lost Navigator
    27 Nov 2012, 05:47 PM Reply Like
  • I appreciate all your responses not suggesting I am total idiot and not alone in my confusion. It would be nice, however, if the author wrote a simple conclusion aka "Financial Analysis for Idiots" that summarizes their research. I don't care about the details of your drive to Cleveland just what you found when you got there.
    About myself-I have been 100% invested in REIT's since 2007 and never had a bad year interms of a dividend stream. My portfolio has out perfomed the DJI and S&P in total return in all those years. If their is a risk, I'll take it.
    28 Nov 2012, 11:19 AM Reply Like
  • Jim Cramer, on last night's show, said REIT's are ok, but said, "stay away from the Annaly's". I'm hoping he didn't mean to sell, just not add to your investment at this point. Either way, I'm holding firm and in agreement with most of the comments by all you fine contributors.
    Also, if you're taking part in this loose forum, you're already NOT an "average" investor.
    28 Nov 2012, 03:55 PM Reply Like
  • I was also confused about Cramer's comments last night about the taxation uncertainty of REIT dividends.


    Virtually all equity REIT and mREIT dividends are distributed as ORDINARY dividends. This type of dividend is already taxed the same as ordinary income. ORDINARY dividends do not receive any special taxation at the 15% capital gains rate -- like QUALIFIED dividends do. The only way taxation on ORDINARY dividends will change is if personal tax rates change. So, all Cramer's concerns about the raising of taxes on dividends reducing yield do not apply to REIT dividends.


    All the generalizations about "dividends" just confuse people about what tax changes are likely to occur and how few folks might really be affected. Did I miss something?


    29 Nov 2012, 03:02 AM Reply Like
  • Can Cramer spell "RMBS"?
    28 Nov 2012, 04:05 PM Reply Like
  • After reading a lot of reports regarding NLY and CIM, I dumped them some time ago. As much as AGNC gets a lot of press I still dumped the holdings. They are going to have a big drop in their dividends based on 2013 earning projections. I think dividends will drop to $4.00 or less.


    I just bought WMC yesterday. I find very little negatives about this REIT. 17% dividend, strong earnings next year, 5.6% CRP ,selling below book, buy backs and insiders buying like crazy.
    29 Nov 2012, 10:40 AM Reply Like
  • Dear Lord, a drop to $4.00/sh on a $31.00 stock would ruin you to only receive 12% - 13% yields rather than 15% - 16% yields. How will we ever survive? Good luck finding something better without a massive increase in risk. I think I'll stick with this mREIT market leader that has some of the brightest people in the business working for them, and nothing but praise from Wall Street's analysts.
    30 Nov 2012, 09:43 AM Reply Like
  • The point is not the drop in dividends but the possible drop in the stock price after the lower dividends are announced. That will be the time I go back in and buy. However, given that the current BV is greater that the current selling price of 31.55, I'm not really sure how much of a drop there will be. Falling off the "cliff" may also drive the stock lower. The YTD low end for the stock was $22.03 but I will jump in if the stock drops below $29.50. I sold in early November for 30.45 and used the proceeds to take positions in NYMT and WMC. If WMC drops below $20 I will buy more. Much more. I think it is the best REIT play right now.
    1 Dec 2012, 12:11 PM Reply Like
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