Shamefully, I haven't done much with
Agency Mortgage REITs here, but the times they are a changing.
Not exact matches
Annaly Capital Management, Inc. (NLY)-- 21.84 % American Capital
Agency Corp. (AGNC)-- 16.87 % Two Harbors Investment Corp (TWO)-- 4.69 % MFA Financial, Inc. (MFA)-- 4.61 % Chimera Investment Corporation (CIM)-- 4.49 % Hatteras Financial Corporation (HTS)-- 4.32 % Starwood Property Trust, Inc. (STWD)-- 4.31 % CYS Investments Inc (CYS)-- 4.16 % Invesco
Mortgage Capital Inc (IVR)-- 4.11 % ARMOUR Residential
REIT Inc (ARR)-- 4.03 %
But with access to
mortgage REIT American Capital
Agency (NASDAQ: AGNC), midstream energy specialist Linn Energy (NASDAQOTH: LINEQ), and other high - yielding dividend stocks, you can use a Coverdell to get similar tax benefits that 529 plans offer while boosting your portfolio income.
ARMOUR Residential is a
mortgage REIT that invests in
agency residential
mortgage - backed securities.
While other
mortgage REITs like Annaly Capital Management (NYSE: NLY) or American Capital
Agency (NASDAQ: AGNC) managed to increase their book values in the first quarter of 2014, ARMOUR Residential continued to lose ground.
Mortgage REITs, like Annaly Capital Management and American Capital
Agency, carry hefty dividend yields, but these stocks may not be the best fit in a retiree's portfolio.
For instance, look at the situation of the widely held
mortgage REIT American Capital
Agency (NASDAQ: AGNC), which has been aggressively buying back its shares.
Mortgage REITs including American Capital Agency were sold off sharply by investors in 2012 and 2013 as investors feared the end of loose monetary policy and ultra-low interest rates, which hugely benefited the capital - intensive business models of mortgag
Mortgage REITs including American Capital
Agency were sold off sharply by investors in 2012 and 2013 as investors feared the end of loose monetary policy and ultra-low interest rates, which hugely benefited the capital - intensive business models of
mortgagemortgage REITs.
But I think there is more to the story with American Capital
Agency than with most
mortgage REITs.
Over a variety of different performance evaluation periods, American Capital
Agency has regularly outperformed its
mortgage REIT peers.
Mortgage REIT American Capital
Agency reported earnings on Monday; here's an inside look at how i...
Markets barely responded, and
mortgage REIT bellwethers Annaly Capital Management, (NYSE: NLY) and American Capital
Agency Corp. (NASDAQ: AGNC), as usual, had their fortunes lifted or depressed by the movements of the 10 - year Treasury bonds.
Now, in mid-March, spreads were particularly high, because
mortgage REITs and other leveraged holders of
agency mortgages were forced to sell because of rising haircuts on repo financing.
ACAM currently generates the bulk of its fee income from publicly traded
mortgage REITs, American Capital Agency (NASDAQ: AGNC) and American Capital Mortgage (NASDAQ: MTGE), which have been in a slow
mortgage REITs, American Capital
Agency (NASDAQ: AGNC) and American Capital
Mortgage (NASDAQ: MTGE), which have been in a slow
Mortgage (NASDAQ: MTGE), which have been in a slow decline.
Then again, that's a guess because this
REIT is so new and its portfolio of almost entirely 30 - year
agency mortgages will surely be fleshed out into other areas with more credit risk but possibly less interest - rate risk.
The same people run American Capital Ltd. (ACAS), a business development company that survived the credit meltdown but is on the mend, and American Capital
Agency Corp. (AGNC), another
mortgage REIT whose name tells you that it invests only in government - backed loans.
Let's run through the several different types of
mortgage REIT investments: Agency Mortgage -
mortgage REIT investments:
Agency Mortgage -
Mortgage -LSB-...]
Many of the top
Mortgage REITs, like Annaly (NLY) and American Capital
Agency (AGNC), are now trading below their book values.
This includes people from a multitude of industry disciplines including: Academics, Credit Rating
Agency Analysts, Foundation Managers, Hedge Fund Managers, Investment Bankers, Investment Management Consultants, Lenders,
Mortgage Brokers, Mutual Fund Managers, Pension Plan Sponsors, Private Equity Fund Managers, Registered Investment Advisers,
REIT Analysts, Regulators, Research Directors, and Sovereign Fund Managers.
Other aspirant CMBS shops include Annaly Capital Management Inc. the largest
mortgage REIT listed in New York Stock Exchange, which has diversified, expanding from its core business of
agency RMBS to offer CMBS as well.
Of the approximately $ 6.9 trillion of U.S. backed bonds known as
agency mortgage securities that are outstanding, 11 of the biggest
REITs own about $ 180 billion, or around 3 percent, according to investment bank KBW.
American Capital
Agency - as with all the
mortgage REITs - is being forced to change the way they do business, and, as usual, the shareholder pays the price.