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  • Are High Yielding aMREITs Ready to Run? [View article]
    The MREITs referrenced invest in govt. guaranteed mortgages. They are not Thornburg. They can have the funding problem though. The guaranteed interest rate of 5% on the investments will not look so good if the cost of funds to carry the MBS becomes 6%. That is what happened to the S&L's in the late 70's. It took them out. This is a fairly simple business. It still has dangers.


    On Jun 28 09:09 AM David Van Knapp wrote:

    > Very good article, thanks. I am not an expert in aMREITS, but while
    > I was reading the description of what they invest in, and considering
    > myself as a possible investor in them, I couldn't help but think
    > that this is the same kind of thing that blew up for so many banks
    > and led to the banking/financial crisis we are in right now: Leveraged
    > bets on packages of mortgage-backed securities with hard-to-believe
    > returns.
    Jun 28 23:39 pm |Rating: 0 0 |Link to Comment
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