iShares Mortgage Real Estate Capped ETF (REM) - NYSEARCA
  • Tue, Jul. 12, 11:38 AM
    • Plunging interest rates in June led to an 8.5% pickup in 30-year and 15-year fixed agency MBS prepayment speeds, and 14% for ARMs, according to the latest data.
    • KBW's Bose George expects prepayments to stay elevated over the next few months, but with mREITs already trading at an average 0.9x book value, the pressure on earnings may already be priced in.
    • Picking out a couple of names, Capstead Mortgage (CMO +0.6%) has meaningful prepay risk, says George, while risk is more contained at MFA Financial (MFA -0.1%).
    • ETFs: MORL, REM, MORT
    • Meanwhile, pain for the mortgage REITs in this case means gain for companies that might benefit from the fast pace of mortgage production. Title insurers like First American Financial (FAF +0.7%) and Fidelity National (FNFV +2.1%) come to mind.
    | Tue, Jul. 12, 11:38 AM | 10 Comments
  • Fri, Jun. 24, 10:30 AM
    • A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
    • A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
    • The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
    • Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
    • The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMUVNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
    | Fri, Jun. 24, 10:30 AM | 43 Comments
  • Tue, Jun. 21, 7:14 AM
    • iShares S&P Small-Cap Value ETF (NYSEARCA:IJS) - $0.380.
    • iShares Mortgage REIT Capped ETF (NYSEARCA:REM) - $0.274.
    • iShares U.S. Utilities ETF (NYSEARCA:IDU) - $0.900.
    • iShares U.S. Home Construction ETF (NYSEARCA:ITB) - $0.029.
    • iShares Core S&P 500 ETF (NYSEARCA:IVV) - $0.998.
    • Payable June 27; for shareholders of record June 23; ex-div June 21.
    | Tue, Jun. 21, 7:14 AM | 7 Comments
  • 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, Jun. 15, 7:03 AM
    | Wed, Jun. 15, 7:03 AM | 7 Comments
  • Thu, Jun. 9, 7:12 AM
    • The sector is worth keeping an eye on today as companies begin declaring Q2 dividends. CYS Investment overnight cut its quarterly payout by a penny to $0.25, and Capstead Mortgage just slashed its dividend by three cents to $0.23.
    • ETFs: MORL, REM, MORT
    | Thu, Jun. 9, 7:12 AM | 14 Comments
  • Wed, Jun. 8, 7:04 AM
    | Wed, Jun. 8, 7:04 AM | 4 Comments
  • Wed, Jun. 1, 7:01 AM
    | Wed, Jun. 1, 7:01 AM | 2 Comments
  • Wed, May 25, 7:02 AM
     
    | Wed, May 25, 7:02 AM | 4 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
  • Wed, May 18, 7:03 AM
    | Wed, May 18, 7:03 AM | 1 Comment
  • Sat, May 14, 11:33 AM
    • The idea of rates lower for longer and a narrowing of credit spreads have helped lift the mortgage REIT sector by 22% since mid-February, but the group remains 17% below year-ago price levels, trades at a near-15% discount to book value, and yields 12%.
    • Source: Barron's Amey Stone
    • Still a buy? "There are different risks on the asset side, the funding side, and the hedging side,” says Wunderlich's Merrill Ross. She expects the Fed to be on hold until late this year, but notes that doesn't necessarily mean full-speed ahead for sector prices. Years of extremely low rates and expectations of soon-to-come higher rates have made it a "difficult operating environment."
    • Lower rates aren't always a boon, and Nomura's Brock Vandervliet says a sharply flatter yield curve could would hit earnings and force dividend cuts. His favorites are sector gorilla Annaly Capital (NYSE:NLY), and Chimera Investment (NYSE:CIM). Chimera, he says, should benefit from regulatory changes allowing it to do more mortgage securitizations. Annaly is trading at just about a 5% discount to book value today vs. close to 20% not long ago. Chimera is actually trading slightly north of March 31 book value of $14.46.
    • Ross' favorites are two where the dividends are solid: CYS Investments (NYSE:CYS) - one of the only pure-play agency MBS REITs left - and Invesco Mortgage (NYSE:IVR).
    • ETFs: MORL, REM, MORT
    | Sat, May 14, 11:33 AM | 15 Comments
  • Wed, May 11, 7:02 AM
    | Wed, May 11, 7:02 AM | 1 Comment
  • Wed, May 4, 3:29 PM
    • Of particular interest given he's on stage at Ira Sohn following hard-money advocate Stan Druckenmiller (hike rates, but gold), Jeff Gundlach thinks the idea of the Fed talking about higher rates while cutting growth forecasts makes no sense.
    • He's got a pair trade idea: Buy mortgage REITs (NYSEARCA:REM) and sell utilities (NYSEARCA:XLU). The strategy is based on the idea that the valuations of unloved and "cheap" mREITs, and over-loved and "pricey" utilities will converge.
    • Low-volatility stocks (of which utilities fit the bill) are an oxymoron, says Gundlach. Buying at these prices is like the old game "Dynamite Shack."
    • Live blog
    • Utility ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX
    • Mortgage REIT ETFs: MORL, REM, MORT
    • Previously: Bill Gross: Go long helicopter makers (May 4)
    | Wed, May 4, 3:29 PM | 11 Comments
  • Wed, May 4, 7:01 AM
    | Wed, May 4, 7:01 AM | 2 Comments
  • Wed, Apr. 27, 7:01 AM
    | Wed, Apr. 27, 7:01 AM | 5 Comments
REM Description
The iShares FTSE NAREIT Mortgage Plus Capped Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE NAREIT All Mortgage Capped Index.
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