marinsunshine

Jim Cramer's Mad Money Lightning Round Picks, 6/7/07

NLY will certainly be helped by lower rates, but since they invest primarily in MBS's higher default rates should give them a boost as well. Why? Because in the case of foreclosures Fannie, Freddies and Ginnies pay off at 100% of face value, meaning bonds purchased at a discount wil have capital gains in them in that scenario. It's sounds counter-intuitive, but that's the way it works.