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"Sell your Mortgage REITS immediately," writes Todd Johnson, who likes the sector, but is...

"Sell your Mortgage REITS immediately," writes Todd Johnson, who likes the sector, but is worried they could get hit hard if the debt ceiling issue is not resolved. A downgrade of government paper could force collateral calls, reduced leverage, and funding issues. AGNC -2.7%, NLY -2.2%, HCS -0.3%.
Comments (8)
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    I have just recently turned my attention to MREITs and man are they interesting from an income point of view, 14.5% dividend for Annaly!

     

    This might be setting up for a great entry point once these issues get resolved one way or another.
    25 Jul 2011, 11:46 AM Reply Like
  • Humble Value Miner
    , contributor
    Comments (407) | Send Message
     
    I'm adding, ok government is not smart but they have all seen 2008 and 2009 and they know they're playing with fire.
    25 Jul 2011, 12:17 PM Reply Like
  • FREDDESAIN
    , contributor
    Comments (21) | Send Message
     
    I'm a buyer of NLY on this dip. Thanks for the panic panini Todd Johnson
    26 Jul 2011, 09:38 AM Reply Like
  • chas_ell
    , contributor
    Comments (3) | Send Message
     
    NLY seems like a good bet , particularly attractive in tax free accounts......
    26 Jul 2011, 02:42 PM Reply Like
  • diepwjulius
    , contributor
    Comments (120) | Send Message
     
    Todd, are we selling this paper to you? j/k Caution is good advice.
    27 Jul 2011, 01:04 PM Reply Like
  • Enpassant
    , contributor
    Comments (194) | Send Message
     
    NLY has the longer track record, AGNC a better return. NLY has consistently had high options action, and currently may be shorted less of its float. Disclosure: long AGNC.
    28 Jul 2011, 10:35 AM Reply Like
  • diepwjulius
    , contributor
    Comments (120) | Send Message
     
    I use REM, half the yield of most mortgage REITs w/ some exposure to a few banks. And I have BKLN on the other side of the trade.
    28 Jul 2011, 03:37 PM Reply Like
  • Connermalrose
    , contributor
    Comments (118) | Send Message
     
    Ha i wish i could get AGNC around $25 a share let alone 22.50 if i was managing money for a living i would have jumped all over this dip. But now idk if AGNC is worth the $27 a share
    30 Jul 2011, 08:37 AM Reply Like
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