UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) - NYSEARCA
  • Wed, Jun. 15, 3:20 PM
    • Fed Funds futures markets are pricing in just a 50% chance of a rate hike in 2016 after the FOMC stayed on hold in June and cut its expectations for future moves higher in interest rates.
    • The mREITs (REM +0.7%) are up just modestly, but all higher now than they were prior to the FOMC news.
    • Annaly Capital (NLY +0.6%), American Capital Agency (AGNC +0.9%), Armour (ARR +1.4%), CYS Investments (CYS +1%), New York Mortgage (NYMT +1.4%), Capstead Mortgage (CMO +1.1%).
    • ETFs: MORL, REM, MORT
    | Wed, Jun. 15, 3:20 PM | 12 Comments
  • Wed, May 18, 2:25 PM
    • Having repriced over the past few months for a rates lower-for-longer environment, mREITs (REM -1.6%) may have to reprice again as the FOMC minutes more or less signal the central bank's intention to hike rates in June.
    • Yield-starved names like banks, insurers, and online brokers are soaring, but income producers like Annaly Capital (NLY -2.7%), American Capital Mortgage (AGNC -2.5%), Armour (ARR -3.1%), CYS Investments (CYS -3.4%), Capstead (CMO -2%), Western Asset (WMC -2.3%), Anworth (ANH -2.3%), and Ellington Residential (EARN -2.4%) are going the opposite way.
    • ETFs: MORL, REM, MORT
    | Wed, May 18, 2:25 PM | 107 Comments
  • Mon, Apr. 11, 12:49 PM
    • Annaly Capital (NLY -1.1%) is lower following its agreement to purchase Hatteras Financial (HTS +10.2%) for $1.5B in cash and stock. The other sector giant, American Capital Agency (AGNC -0.1%) is in the red as well - makes sense considering these two players are acquirers (or at least potentially so), not targets.
    • With the deal, Annaly is adding a portfolio of variable rate mortgages to its books for about 85% of book value.
    • The rest of the sector has market caps of about $2.5B down to sub-$250M, making them digestible as well.
    • CYS Investments (CYS +1.3%), American Capital Mortgage (MTGE +1.9%), New York Mortgage (NYMT +2.5%), Anworth Mortgage (ANH +1.2%), Dynex Capital (DX +0.9%), AG Mortgage (MITT +1.2%), Ellington Residential (EARN +1.2%), PennyMac (PMT +1%), Five Oaks (OAKS +1.6%).
    • ETFs: MORL, REM, MORT
    • Now read: Annaly: Boom Goes The Dynamite (April 11)
    | Mon, Apr. 11, 12:49 PM | 10 Comments
  • Thu, Mar. 17, 1:31 PM
    • It's day two of advances for the mortgage REIT sector (REM +1.6%) after the Fed's dovish turn yesterday. The spread between two-year and ten-year U.S. Treasury yields is up to 102 basis points vs. an eight-year low of 95 bps just over a week ago. That spread, of course, is what mortgage REITs profit from, and bigger is better.
    • American Capital Agency (AGNC +1.8%), Two Harbors (TWO +2%), CYS Investments (CYS +1.8%), New York Mortgage (NYMT +5.3%), MFA Financial (MFA +1.2%), Dynex (DX +2.4%), Ellington (EARN +1.7%), Five Oaks (OAKS +2.9%)
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Mortgage REITs in the green after dovish Fed (March 16)
    | Thu, Mar. 17, 1:31 PM | 12 Comments
  • Wed, Mar. 16, 2:32 PM
    | Wed, Mar. 16, 2:32 PM | 36 Comments
  • Fri, Feb. 26, 8:26 AM
    • It was only a matter a time given the massive discounts to book value in the sector. Apollo Commercial Real Estate (NYSE:ARI) is buying Apollo Residential Mortgage (NYSE:AMTG) for $14.59 per share. It's a hefty premium to last night's close of $10.13, but well below AMTG's just-reported end-of-year book value of $16.40.
    • Consideration: AMTG owners will receive about $7.53 in cash and 0.417 shares of ARI for each share of AMTG they hold. The cash portion is subject to change based on changes in AMTG's book value.
    • The deal is expected to be accretive to ARI's BVPS this year (how could it not be).
    • Source: Press Release
    • ETFs: MORL, REM, MORT, LMBS
    | Fri, Feb. 26, 8:26 AM | 30 Comments
  • Wed, Feb. 3, 3:01 PM
    • Today's gains are being led by Arlington Asset (AI +7.3%) (not a REIT, but in the business) after it posted its first quarterly increase in book value in six quarters last night.
    • American Capital Agency (AGNC +1.7%) reported earlier this week, and Nomura's Brock Vandervliet notes three positives from yesterday's earnings call (transcript): 1) More buybacks are coming; 2) Green shoots are apparent in the MBS market; 3) Book value should remain stable from here (it rose a bit in the year's final month, though dipped for the quarter).
    • He does slightly adjust downward his earnings estimates - by a penny in Q1 to $0.54 per share, and by two cents for the full year. He expects the $0.60 dividend is safe through H1, but there is some risk there.
    • Annaly (NLY +0.7%), Two Harbors (TWO +2.9%), CYS (CYS +2.6%), Hatteras (HTS +1.9%), Capstead (CMO +2.2%), Dynex (DX +2.2%)
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Arlington Asset posts Q4 book value gain (Feb. 2)
    • Previously: American Capital Agency higher post-earnings (Feb. 2)
    | Wed, Feb. 3, 3:01 PM | 22 Comments
  • Wed, Jan. 20, 10:44 AM
    • The discounts to book values across the sector have grown to such high levels that one wonders whether it just makes more sense for many of these players to liquidate the portfolios and return the money to the shareholders.
    • Sector giants Annaly Capital (NLY -4.9%) and American Capital Agency (AGNC -4.6%) are selling at 30% discounts to their most recent book value.
    • Armour Residential (ARR -8.3%), Invesco Mortgage (IVR -7%), Hatteras Financial (HTS -5%), New York Mortgage (NYMT -9.5%), Apollo Residential (AMTG -6.4%), AG Mortgage (MITT -7.2%), Anworth (ANH -6.3%), Arlington Asset (AI -8.7%), and Five Oaks (OAKS -8%) are selling at greater than 40% discounts. Two Harbors (TWO -7.5%), CYS Investments (CYS -6.2%), American Capital Mortgage (MTGE -6%), Capstead (CMO -5.9%), Dynex (DX -7.2%), Western Asset (WMC -8%), Ellington Residential (EARN -7.2%), and Orchid Island (ORC -9.6%) are all nearing 40% discounts.
    • MFA Financial (MFA -6.4%) and Chimera Investment (CIM -8.1%) are both nearing 30% discounts to book.
    • ETFs: MORL, REM, MORT, LMBS
    | Wed, Jan. 20, 10:44 AM | 249 Comments
  • Fri, Jan. 15, 10:23 AM
    • In the midst of a market panic and with the sector trading at massive discounts to book value, it takes a pair to issue downgrades now, but that's what Wells Fargo has done, cutting Annaly Capital (NLY -2.9%), MFA Financial (MFA -4.1%), Hatteras Financial (HTS -4.5%), American Capital Mortgage (MTGE -5%), AG Mortgage (MITT -5.9%), and Two Harbors (TWO -3.4%) to Market Perform from Outperform.
    • At last check one month ago, these names were trading at discounts to NAV ranging from about 10-30%. Presumably those discounts have widened as the stock prices have crumbled further since then, and book values have likely remained stable or even risen.
    • For the last year, mREITs have had to contend with the possibility of higher interest rates across the board. Now they have to deal with a sharply flatter yield curve as the 10-year Treasury yield has fallen about 30 basis points since the Fed hiked last month.
    • Good news? FRBNY President Bill Dudley is on the tape this morning suggesting negative interest rates as a possibility if the economy sours. That should help mREIT funding costs.
    • ETFs: MORL, REM, MORT, LMBS
    | Fri, Jan. 15, 10:23 AM | 58 Comments
  • Tue, Jan. 12, 3:17 PM
    • The 10-year Treasury yield is off eight basis points on the session at 2.10%, and now lower by about 20 basis points since the Fed Funds rate got hiked 25 basis points less than a month ago - probably not the best scenario for mREIT earnings going forward.
    • Other income favorites like equity REITs, BDCs, and utilities (XLU -0.8%) are also being aggressively sold today.
    • Annaly Capital (NLY -1.8%), American Capital Agency (AGNC -1.7%), Armour Residential (ARR -2.4%), Two Harbors (TWO -2%), CYS Investments (CYS -1.9%), Invesco (IVR -2.3%), New York Mortgage (NYMT -2.3%), Hatteras (HTS -3.2%), Capstead (CMO -3.6%), Western Asset (WMC -2.9%), Apollo Residential (AMTG -3.6%), Dynex (DX -3.1%), Ellington Residential (EARN -3.5%), AG Mortgage (MITT -3.2%), PennyMac (PMT -4.9%), FIve Oaks (OAKS -5.7%)
    • ETFs: MORL, REM, MORT, LMBS
    | Tue, Jan. 12, 3:17 PM | 24 Comments
  • Wed, Jan. 6, 3:28 PM
    • Trading at roughly a 25% discount to book value, there's plenty of value in the mortgage REIT sector, and now there's a catalyst with the broad-based averages and interest rates both in sharp decline to start the year.
    • The iShares FTSE NAREIT Mortgage REIT ETF (NYSEARCA:REM) is up 2.2% YTD after declining about 20% in 2015.
    • Annaly Capital (NYSE:NLY) and American Capital Agency are each up about 2.5%.
    • Others in the green: Two Harbors (NYSE:TWO), Chimera (NYSE:CIM), CYS Investments (NYSE:CYS), Invesco (NYSE:IVR), New York Mortgage Trust (NASDAQ:NYMT), Hatteras (NYSE:HTS), Capstead (NYSE:CMO), MFA Financial (NYSE:MFA), Western Asset (NYSE:WMC), Anworth (NYSE:ANH).
    • ETFs: MORL, REM, MORT, LMBS
    | Wed, Jan. 6, 3:28 PM | 35 Comments
  • Dec. 16, 2015, 2:24 PM
    • The about left-for-dead mortgage REIT sector (REM +2.4%) has been enjoying a big Fed rate hike day, and has added to gains since the news officially came down at 2 ET.
    • Credit-exposed names are leading the way higher: Chimera Investment (CIM +5.7%), Invesco (IVR +2.4%), New York Mortgage (NYMT +2.1%), Western Asset (WMC +5.6%), Anworth (ANH +2.7%), Arlington Asset (AI +4.7%), AG Mortgage (MITT +4.2%), Orchid Island (ORC +5%). MFA Financial (MFA +3.4%)
    • Others: Annaly (NLY +2.1%), American Capital Agency (AGNC +0.8%), CYS Investments, Capstead (CMO +1.6%)
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Fed projections: 1.4% Fed Funds by the end of 2016 (Dec. 16)
    • Previously: Fed officially puts an end to ZIRP (Dec. 16)
    | Dec. 16, 2015, 2:24 PM | 35 Comments
  • Dec. 14, 2015, 11:32 AM
    • Before it was fears about interest rates - first, with long yields too low and thus slimming margins, and then the Fed's promise to hike short rates (and slimming margins even more). Now we can toss credit worries into the mix, and the action's plenty panicky there - junk bonds are off sharply again today and two more funds have been forced to gate withdrawals and/or liquidate.
    • Once pure-play agency REITs like Annaly Capital (NLY -2%) and American Capital Mortgage (AGNC -1.7%) now have some credit exposure.
    • Others are more credit-exposed: Chimera Investment (CIM -3.5%), Invesco (IVR -2.7%), American Capital Mortgage (MTGE -2.8%), MFA Financial (MFA -2.8%), New York Mortgage (NYMT -4.7%), Western Asset (WMC -3.6%), Anworth (ANH -2.9%), Arlington Asset (AI -3.6%), Javelin (JMI -4.8%), Orchid Island (ORC -7.4%), Five Oaks (OAKS -12.3%)
    • Just to pick a few out, Annaly Capital sells at a 24.4% discount to Sept. 30 book value; American Capital Agency sells at a 26.3% discount; Invesco at a 30% discount; MFA Fnancial at 15.4% discount; New York Mortgage at a 25% discount (this sold at a premium to book as recently as early fall).
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 14, 2015, 11:32 AM | 65 Comments
  • Dec. 11, 2015, 3:52 PM
    • The sector often goes green on days when the major averages sell off, but not today, WIth the S&P 500 down 2% and the 10-year Treasury yield lower by 10 basis points to 2.13%, the mREIT sector (REM -2%) is lit up bright red.
    • Sector giants Annaly Capital (NLY -1.6%) and American Capital Agency (AGNC -1.2%) are among the best performers.
    • Armour Residential (ARR -2.1%), Invesco (IVR -3.3%), New York Mortgage (NYMT -1.9%), Western Asset (WMC -3.6%), Apollo Residential (AMTG -4.2%), Dynex (DX -2.8%), Arlington Asset (AI -3.7%), Ellington Residential (EARN -2.9%), Five Oaks (OAKS -6.7%)
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 11, 2015, 3:52 PM | 41 Comments
  • Oct. 27, 2015, 3:34 PM
    | Oct. 27, 2015, 3:34 PM | 11 Comments
  • Oct. 7, 2015, 11:15 AM
    • So roughed up are the mortgage REITS (REM +0.7%), that what's now a six-day rally in the sector is little more than a blip on the longer-term chart.
    • There's no particular news today, but with much of the sector trading at somewhere in the area of a 15-20% or even higher discounts to book value, even the worst scenario on interest rates may be more than priced in.
    • Leading the way higher today are Ellington Residential (EARN +4.3%), Javelin Mortgage (JMI +3.4%), Arlington Asset (though not a REIT) (AI +2.3%), Dynex Capital (DX +0.9%), Apollo Residential (AMTG +1.2%), PennyMac Mortgage (PMT +1%), Cherry Hill Mortgage (CHMI +1.2%), Hatteras Financial (HTS +0.5%), Two Harbors (TWO +0.8%). The action in Annaly Capital (NLY) and American Capital Agency (AGNC -0.3%) is more subdued.
    • ETFs: MORL, REM, MORT, LMBS
    | Oct. 7, 2015, 11:15 AM | 27 Comments
MORL Description
The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (NYSE: MORL) ("MORL" or the "ETN") is an exchange-traded note linked to the monthly compounded 2x leveraged performance of the Market Vectors® Global Mortgage REITs Index (the "Index"), reduced by the Accrued Fees. MORL is listed on the NYSE Arca exchange, is denominated in USD, and pays a USD-denominated variable monthly coupon linked to 2 times the cash distributions, if any, on the Index constituents, less any withholding taxes.
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Country: United States
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