Are Annaly Capital And mREITs Right For Seniors? [View article]
Its best if the author knows the ins and outs of the subject matter he is spewing out. Likely he is or was making some great commissions steering the old and gullible into safe harbor investments like Annuities and Treasuries. As a senior myself, I can speak for myself when I say, mReits should definitely be a critical part of a seniors portfolio. This antiquated notion that seniors should never, ever touch principal is great if you're an heir but often does little to enhance the comfort, enjoyment or lifestyle of the aging. More often it negatively impacts them
The so-called super safe investments have done nothing to protect the wealth of the elderly during the same period of time that the author alludes to in his commentary. Most seniors I know have a working brain stem and really don't need to be led around by some smooth talking pitchman making his money off the gullible or scared seniors (who scared them btw?) who they often try to play for fools.
In short, are mReits for everyone? That depends, on the risk tolerance, the income needs, the education and willingness of the investor to become involved with the handling of his/her investments. But in this day and age, given the past decade of events, an uninformed investor is at the mercy of pitchmen, con-artists and slicksters and we read about these tragic stories nearly everyday. Become informed and involved my fellow senior investors. There are many free training and investment seminars available at/from respectable brokerage houses across the nation on a regular basis. There are also investment clubs, blogs and on-line training and educational tools. Please use them and rebel against these manipulators. Take charge of your Life and your Future.
"Our goose is cooked," writes a mortgage trader, imagining a conversation at the trading desk of a pure GSE mREIT like Annaly (NLY). With MBS prices bid to all-time highs (thank you Fed) and refinances on the way up, mREITs face an ugly combination of lower yields and higher prepays. One solution: Unload their MBS at these high prices - tell the staff to take a long vacation - and wait for Bernanke to exit. [View news story]
So the long awaited Sept Correction is underway and the Negative Nellies are out and about in force. The rate of return is still better than the blue chips and any of the MMs, CDs and US Treasuries. So Panic if you must, Those with Cash On Hand will profit.
Lastly, ask yourselves how much of this is or could be due to maqrket manipulation by the Big Boys, the market makers who have had a Piss Poor Year and are looking to get into Reits and other high yielders so they can improve their overall ROR before the EOY, in order to do so they need lower prices. Your Panic sales will certainly help them out and allow them to claim better returns than they actually managed to pull off so they can justify their higher management fees from their sucker clientèle. This is kind of like that "imaginary Conversation that start this thread.
Unfortunately I live and have worked for - though not in the past 2 decades - Xerox. The current crop of senior management is every bit as inept as its predecessors. The fact that the blind monkey found a banana, the ACS acquisition in no way corrects its eyesight.
You final comments, esp, setting the bar low for Xerox is on point. People have and should continue to set the bar low for the bunglers that rule at Xerox.
I do not own and have not owned the shares of this disreputable company for over 20 years. May Joe Wilson RIP and stop rolling over in his grave.
Annaly (NLY) announces the repurchase of $600M in 4% convertible senior notes due in 2015. Lengthening the average days to maturity of its repo agreements, the move is in line with the firm's typical conservative financing aims. The company also announces an offering of Series D preferred shares. Market chatter has these set to be priced around 7.5%. [View news story]
I guess the Full Faith and Trust of the US Gov't isn't good enough security for you Mex. Since all the MBS they purchase have this the suggestion that they would go bust is ludicrous on its face.
NLY's leverage is about the lowest of the mReits again another non sequitor.
Now if you wanted to ask why someone might forgo the higher paying Common stock to purchase the Preferred shares that at least might have had some relevance to the conversation.
Annaly Positioned Well In The Face Of Strong Headwinds [View article]
NLY should be able to weather the Obama/Feds meddling in the Real Estate markets. The Fed will eventually end up eating poor to bad paper as they once again try to unleash Fannie and Freddie to accommodate the minority market ( the cause of the last meltdown).
But that still means a rough road ahead for them Reits. They'll still be paying good to great dividends throughout the year but probably will experience some price fluctuations too.
Mortgage REITs (MORT) catch the eye of D.C., with the Financial Stability Oversight Council reportedly set to cite the industry as a potential source of market vulnerability. The companies have seen assets quadruple to over $400B since 2009, but Annaly (NLY) CEO Wellington Denahan notes their capital bases have risen as well. A Two Harbors (TWO) presentation (page 8) shows mREITs are relatively small players in the MBS market. Maybe the Fed and the GSEs just don't like the competition. Annaly and American Capital (AGNC) are the 2 biggest mREITs, with Two Harbors a distant 3rd. [View news story]
Freddie and Fannie were used as Political appointee Plums and inconjunction with the FHA and other Federal Mortgage lending programs were the Primary reason that America saw a Financial Collapse because of Democrat appointee mismanagement, Political campaign contributions from the Organizations and their leadership, and the refusal of the Democrat controlled Congress to address Multiple times the ever-increase threats of major, then catastrophic problems within those Orgs while Democrat leaders, esp. Barney Frank, who was sleeping with the #2 guy at Freddie, sought ways to keep the bad monetary lending policies in place and further assured the Financial collapse of our Economy. Facts are a terrible thing and the long and clear History here is that the Congress knew and refused to do anything to prevent the Implosion while lining their own pockets with cash from these orgs,
Plump 14.40% Dividend Yielding Stock For Retirees [View article]
Todd Nice article.
mReits should certainly be a part of any portfolio but esp. a senior's.
Too many "houses" try to steer the retired/retiring investors into the grossly under-achieving Money Mkt. CDs, and US Treasury Bonds, esp. their own in-house products/funds for the sake of the safety of the senior investor. (You can preserve capital and still beat inflation) Not only is the "senior" investor losing money every day the money is invested there to inflation, but these firms are reinvesting a good hunk of the seniors' money for a higher rate of return than they are paying them and pocketing the difference on top of the management fees they are charge for these funds.
Unfortunately these seniors are the vast majority of financially and investment-wise un/under-educated individuals. Those that are easily led down the primrose path by many of the less scrupulous types in the industry. Those willing to relinguish control of their financial future to someone that is only in it for the money and not with the pure heart of someone wanting to actually assist the elderly and make their lives really better.
Hopefully some of them have friends like us that will at least inform them of their OTHER OPTIONS and give them a chance to take a little more control of their lives, finances etc.. So Yes, these are very much for seniors, they even have mReit Preferred shares for those more risk adverse seniors.
Sorry for the rant, I recently had a run-in with one of the types described above who wanted their hands on my money and even with an aggressive bent I would have been lucky to maintain the mythical 4% draw down rate with their suggestions. But they would make sure I had money all the way to 105. (ck your actuarial tables on what meager % live that long)
American Capital Agency: Dividends To Stay Intact, Don't Expect Capital Appreciation [View article]
AGNC has done remarkably well YTD and Y-Y on both Dividends and Capital appreciation. The Prepayment churn has been minimized thanks to the banks being tighter fisted than the Original Scrooge at Christmas as recent articles (CNBC etc.) have noted.
Personally, I have sold my AGNC and MTGE earlier this week to cash in on the Capital Gains portion of the overall return since both appear to have topped for the time being. Neither could push through to the next level after having several tries at the $35 & $25 dollar resistance levels. I felt they had topped and took a year's worth of gains + this past qtr. If they fall back significantly I would certainly buy back into either or both.
In the interim, I have decided to retool our very much mReit overweighted portfolios (wife and mine) and seek additional diversification at this time with 7- 16+% dividend payers, including a couple of monthly payers for a nice mix and an overall 10+ ROR with some room for capital appreciation in there too boot.
mReits = CYS, ARR, CIM, NLYPRC & NRFPRB still a bit heavy in them but in a more conservative way. The last two have/are appreciating Preferred shares using Fidelity designators.(NLY/PC or NRF/PB for Yahoo Finance Reference)
PSEC, FTE, WIN, & PDLI provide nice RORs for the rest of the Portfolios. If anyone knows of a nice Energy/Oil related high dividend stock or two (monthly payer would be really nice) please let me know. Good Investing All, I hope this can help some of you in a small way as you have all certainly help me this past year.
Annaly: Can Investors Expect A Dividend Cut? [View article]
a slow and managed reduction in the rate of return or the "dividend" that these REITs Pay out will still be more than anything that the Blue chips pay. NLY is an old and established mReit and AGNC is a newer one But Lo and behold it has a straight line tie to the NLY Experienced Management team that has been de-leveraging NLY and hence the reduced Dividend we see today from them & lo and Behold its kissing cousin AGNC has done like-wise.
The Fed has tried to assure the marketplace that their will be no sudden Interest rate changes through the end of 2013 at least.
Next Up the Obama ReFi plans are more smoke and mirrors and Photo Op for him than they will ever be for those hurt in the Housing Debacle that resulted from the the badly planned and managed Freddie and Fannie fiascos by the Democrats as they tried to finance up to 125% of a property in those Halcyon Days before the collapse. Might I suggest you actually read the latest Obama plan to see how few people will actually be able to benefit from it and how even that number is spread across a wide spectrum of mReits thus minimizing the overall effect on NLY or AGNC.
Might I suggest you take your money and invest in a P&G, IBM & AT&T. I'm sure you'll be much happier and secure there.
Personally I will continue to employ REITs in my Portfolio as a means to grow it in the face of inflationary pressures that seem to outstrip your blue chip portfolio as suggested above.
Of Course I will continue to pay close attention to the Sector as a whole and Interest rates in particular. I want to Thank You for your observations and comments. While I continue to see the glass half full you see it as half empty. In either case, in the short to medium term these investments will continue to outstrip the other sectors and provide a means for the astute investor to beat the overall rate of return of the S&P and all Blue Chips while providing growth as Inflation continues to eat away at the meager earnings offered by other investments.
btw the fact that NLY invests only in Gov't backed securities means it will never go bankrupt per se' as the book value is always there until liquidated.
A double-take is necessary to believe some of the handles in the mREIT sector, undergoing another savage selloff as the Fed hints at even more QE. The pure-agency REITs - in direct competition with the Fed for paper - are hit hardest. AGNC -3.4%, ARR -8.1%, CMO -4.9%, WMC -7.1%, to name a few. [View news story]
The sooner Bernanke and Obama are gone the Sooner America's economy will recover.
The dollar's decline continues, Gold looks to rise and the world's economy already in a dither will only sink further into the morass if America can't recover and under today's current scenarios the Leaders of Industry and Investment have voted with their Money and Americans, their 401Ks, IRAs, Roths, Pensions etc. are all paying a massive price for it.
Annaly (NLY -0.5%) investors may want to pay attention to the meltdown in the shares of Chimera Investment (CIM -8.7%) on the back of an SA article suggesting the firm (which hasn't filed an earnings release or financial information since 2011 Q3) could be headed towards a $0 dividend and/or delisting. Annaly owns a sizable chunk of Chimera and manages the company through a subsidiary. [View news story]
Just another ill-informed basher who has probably shorted the stock
Will These mREITs Continue With Massive Payouts? [View article]
Most investors here have shown the good common sense to monitor their MReits closely as I do. I take capital gains as well as the lush Dividends. As you note they are certainly an opportunistic play at this time especially with the feds sworn to keep a tight lid on interest rates through 2014. Could this change? Yup! Will it? Possibility, esp. if the President tries to lean on the Fed for some re-election help via QE3. But these and other scenarios will require time and disclosure which should give the many fine SA investors time to make any desired adjustments to their accounts and balances.
Lastly given the rate if inflation and the lousy ROR of companies like JnJ, IBM and many others the Knowledgeable traders can and will make money off of mReits and other good paying stocks like PDLI (9.5% Pharma). Couple that with the likelihood that any changes in the mReit Dividends are likely to occur slowly over time and even then still outdistance most other dividend payers for years to come..
I Am Shorting Annaly And Bearish About mREITs [View article]
TY for your contrarian POV. While rates of return will always be adjusted over time the current market place suggests that MReits will be steady and sustainable for the next year to 18mo. Those that are long these investment vehicles are usually intelligent enough to stay abreast of the Feds Policies and views as well as the other factors that affect this investment type.
I just sold off my agnc stock and took the fat dividend and capital gains with me. I will look for another opportunity to invest at a more favorable price in the near future either back into agnc or another MReit. btw for a short term investment (less than 3 mo.) I made a 11% return on AGNC 4% via dividend and 7% on the capital gain - I purchased the shares at 29.04 sold at 31.08. Wish I could do this 3 more times this year on 2000 shares each time. Cha Ching!
So keep up the good work, Hope I didn't cost you any Money while I was making mine. Long ARR, CIM, CYS and NYMT.
Are Annaly Capital And mREITs Right For Seniors? [View article]
The so-called super safe investments have done nothing to protect the wealth of the elderly during the same period of time that the author alludes to in his commentary. Most seniors I know have a working brain stem and really don't need to be led around by some smooth talking pitchman making his money off the gullible or scared seniors (who scared them btw?) who they often try to play for fools.
In short, are mReits for everyone? That depends, on the risk tolerance, the income needs, the education and willingness of the investor to become involved with the handling of his/her investments. But in this day and age, given the past decade of events, an uninformed investor is at the mercy of pitchmen, con-artists and slicksters and we read about these tragic stories nearly everyday. Become informed and involved my fellow senior investors. There are many free training and investment seminars available at/from respectable brokerage houses across the nation on a regular basis. There are also investment clubs, blogs and on-line training and educational tools. Please use them and rebel against these manipulators. Take charge of your Life and your Future.
"Our goose is cooked," writes a mortgage trader, imagining a conversation at the trading desk of a pure GSE mREIT like Annaly (NLY). With MBS prices bid to all-time highs (thank you Fed) and refinances on the way up, mREITs face an ugly combination of lower yields and higher prepays. One solution: Unload their MBS at these high prices - tell the staff to take a long vacation - and wait for Bernanke to exit. [View news story]
Lastly, ask yourselves how much of this is or could be due to maqrket manipulation by the Big Boys, the market makers who have had a Piss Poor Year and are looking to get into Reits and other high yielders so they can improve their overall ROR before the EOY, in order to do so they need lower prices. Your Panic sales will certainly help them out and allow them to claim better returns than they actually managed to pull off so they can justify their higher management fees from their sucker clientèle. This is kind of like that "imaginary Conversation that start this thread.
Xerox Is A Cash Machine [View article]
You final comments, esp, setting the bar low for Xerox is on point. People have and should continue to set the bar low for the bunglers that rule at Xerox.
I do not own and have not owned the shares of this disreputable company for over 20 years. May Joe Wilson RIP and stop rolling over in his grave.
Annaly (NLY) announces the repurchase of $600M in 4% convertible senior notes due in 2015. Lengthening the average days to maturity of its repo agreements, the move is in line with the firm's typical conservative financing aims. The company also announces an offering of Series D preferred shares. Market chatter has these set to be priced around 7.5%. [View news story]
NLY's leverage is about the lowest of the mReits again another non sequitor.
Now if you wanted to ask why someone might forgo the higher paying Common stock to purchase the Preferred shares that at least might have had some relevance to the conversation.
Now where is that rock of yours?
Annaly Positioned Well In The Face Of Strong Headwinds [View article]
But that still means a rough road ahead for them Reits. They'll still be paying good to great dividends throughout the year but probably will experience some price fluctuations too.
Long CIM, ARR, MTGE, MITT, NLYPRC, NRFPRB, NYMT
Mortgage REITs (MORT) catch the eye of D.C., with the Financial Stability Oversight Council reportedly set to cite the industry as a potential source of market vulnerability. The companies have seen assets quadruple to over $400B since 2009, but Annaly (NLY) CEO Wellington Denahan notes their capital bases have risen as well. A Two Harbors (TWO) presentation (page 8) shows mREITs are relatively small players in the MBS market. Maybe the Fed and the GSEs just don't like the competition. Annaly and American Capital (AGNC) are the 2 biggest mREITs, with Two Harbors a distant 3rd. [View news story]
Plump 14.40% Dividend Yielding Stock For Retirees [View article]
mReits should certainly be a part of any portfolio but esp. a senior's.
Too many "houses" try to steer the retired/retiring investors into the grossly under-achieving Money Mkt. CDs, and US Treasury Bonds, esp. their own in-house products/funds for the sake of the safety of the senior investor. (You can preserve capital and still beat inflation) Not only is the "senior" investor losing money every day the money is invested there to inflation, but these firms are reinvesting a good hunk of the seniors' money for a higher rate of return than they are paying them and pocketing the difference on top of the management fees they are charge for these funds.
Unfortunately these seniors are the vast majority of financially and investment-wise un/under-educated individuals. Those that are easily led down the primrose path by many of the less scrupulous types in the industry. Those willing to relinguish control of their financial future to someone that is only in it for the money and not with the pure heart of someone wanting to actually assist the elderly and make their lives really better.
Hopefully some of them have friends like us that will at least inform them of their OTHER OPTIONS and give them a chance to take a little more control of their lives, finances etc.. So Yes, these are very much for seniors, they even have mReit Preferred shares for those more risk adverse seniors.
Sorry for the rant, I recently had a run-in with one of the types described above who wanted their hands on my money and even with an aggressive bent I would have been lucky to maintain the mythical 4% draw down rate with their suggestions. But they would make sure I had money all the way to 105. (ck your actuarial tables on what meager % live that long)
American Capital Agency: Dividends To Stay Intact, Don't Expect Capital Appreciation [View article]
Personally, I have sold my AGNC and MTGE earlier this week to cash in on the Capital Gains portion of the overall return since both appear to have topped for the time being. Neither could push through to the next level after having several tries at the $35 & $25 dollar resistance levels. I felt they had topped and took a year's worth of gains + this past qtr. If they fall back significantly I would certainly buy back into either or both.
In the interim, I have decided to retool our very much mReit overweighted portfolios (wife and mine) and seek additional diversification at this time with 7- 16+% dividend payers, including a couple of monthly payers for a nice mix and an overall 10+ ROR with some room for capital appreciation in there too boot.
mReits = CYS, ARR, CIM, NLYPRC & NRFPRB still a bit heavy in them but in a more conservative way. The last two have/are appreciating Preferred shares using Fidelity designators.(NLY/PC or NRF/PB for Yahoo Finance Reference)
PSEC, FTE, WIN, & PDLI provide nice RORs for the rest of the Portfolios. If anyone knows of a nice Energy/Oil related high dividend stock or two (monthly payer would be really nice) please let me know. Good Investing All, I hope this can help some of you in a small way as you have all certainly help me this past year.
Annaly: Can Investors Expect A Dividend Cut? [View article]
The Fed has tried to assure the marketplace that their will be no sudden Interest rate changes through the end of 2013 at least.
Next Up the Obama ReFi plans are more smoke and mirrors and Photo Op for him than they will ever be for those hurt in the Housing Debacle that resulted from the the badly planned and managed Freddie and Fannie fiascos by the Democrats as they tried to finance up to 125% of a property in those Halcyon Days before the collapse. Might I suggest you actually read the latest Obama plan to see how few people will actually be able to benefit from it and how even that number is spread across a wide spectrum of mReits thus minimizing the overall effect on NLY or AGNC.
Might I suggest you take your money and invest in a P&G, IBM & AT&T. I'm sure you'll be much happier and secure there.
Personally I will continue to employ REITs in my Portfolio as a means to grow it in the face of inflationary pressures that seem to outstrip your blue chip portfolio as suggested above.
Of Course I will continue to pay close attention to the Sector as a whole and Interest rates in particular. I want to Thank You for your observations and comments. While I continue to see the glass half full you see it as half empty. In either case, in the short to medium term these investments will continue to outstrip the other sectors and provide a means for the astute investor to beat the overall rate of return of the S&P and all Blue Chips while providing growth as Inflation continues to eat away at the meager earnings offered by other investments.
btw the fact that NLY invests only in Gov't backed securities means it will never go bankrupt per se' as the book value is always there until liquidated.
A double-take is necessary to believe some of the handles in the mREIT sector, undergoing another savage selloff as the Fed hints at even more QE. The pure-agency REITs - in direct competition with the Fed for paper - are hit hardest. AGNC -3.4%, ARR -8.1%, CMO -4.9%, WMC -7.1%, to name a few. [View news story]
The dollar's decline continues, Gold looks to rise and the world's economy already in a dither will only sink further into the morass if America can't recover and under today's current scenarios the Leaders of Industry and Investment have voted with their Money and Americans, their 401Ks, IRAs, Roths, Pensions etc. are all paying a massive price for it.
Annaly: The Next Victim Of Political Change [View article]
Why is it that Mex can never produce any facts to back up his opinions? Yeah just another nay-sayer with a broken record.
The Fed Is Telling Investors To Buy Annaly Capital [View article]
Annaly (NLY -0.5%) investors may want to pay attention to the meltdown in the shares of Chimera Investment (CIM -8.7%) on the back of an SA article suggesting the firm (which hasn't filed an earnings release or financial information since 2011 Q3) could be headed towards a $0 dividend and/or delisting. Annaly owns a sizable chunk of Chimera and manages the company through a subsidiary. [View news story]
Will These mREITs Continue With Massive Payouts? [View article]
But these and other scenarios will require time and disclosure which should give the many fine SA investors time to make any desired adjustments to their accounts and balances.
Lastly given the rate if inflation and the lousy ROR of companies like JnJ, IBM and many others the Knowledgeable traders can and will make money off of mReits and other good paying stocks like PDLI (9.5% Pharma). Couple that with the likelihood that any changes in the mReit Dividends are likely to occur slowly over time and even then still outdistance most other dividend payers for years to come..
I Am Shorting Annaly And Bearish About mREITs [View article]
While rates of return will always be adjusted over time the current market place suggests that MReits will be steady and sustainable for the next year to 18mo. Those that are long these investment vehicles are usually intelligent enough to stay abreast of the Feds Policies and views as well as the other factors that affect this investment type.
I just sold off my agnc stock and took the fat dividend and capital gains with me. I will look for another opportunity to invest at a more favorable price in the near future either back into agnc or another MReit. btw for a short term investment (less than 3 mo.) I made a 11% return on AGNC 4% via dividend and 7% on the capital gain - I purchased the shares at 29.04 sold at 31.08. Wish I could do this 3 more times this year on 2000 shares each time. Cha Ching!
So keep up the good work, Hope I didn't cost you any Money while I was making mine. Long ARR, CIM, CYS and NYMT.