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Mortgage REITs

I am not looking for new ways to take risk, but someone who has new cash and is thinking of CEFs that specialize in MBS could also consider investing in mortgage REITs. If valid, some of the author's bullish arguments for MREITS would also apply to taxable bond CEFs.

Here's Why Mortgage REITs Plunged 30% To 60% Today
Colorado Wealth Management Fund
Seeking Alpha
Mar. 18, 2020 6:27 PM ET

Summary
Mortgage REITs prices plunged to laughably large discounts.

Mortgage REIT executives have been extremely clear. They are not
suffering from issues that would merit this kind of pricing.

This is a great buying opportunity. We're using price-to-trailing book
values in the public article, but will discuss some recent estimates.

Today we saw the greatest buying opportunity mortgage REITs have seen
in the last decade. No, they aren't dead. Yes, they can still operate.

According to executives in the sector, this is an exceptional earnings
environment. They foresee earnings on equity in the mid teens.

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1 Reply
Explorer ○

Re: Mortgage REITs

Beliavsky,

Thanks for sharing that article. Gives me some clarity about the mReit and CEF situation. 

 

 

 

 

 

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