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Mortgage REITs move sharply higher as earnings roll in

Published 02/15/2018, 02:10 PM
© Reuters.  Mortgage REITs move sharply higher as earnings roll in
CIM
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AGNC
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MFA
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CYS
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MITT
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NLY
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ANH
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ARR
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WMC
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IVR
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TWO
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MORL
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REM
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MORT
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  • Is it possible the bad news has been priced into the mREITs? The sector is lit up bright green today following Q4 reports from Annaly (NLY +2.4%), Armour (ARR +1.4%), Anworth (ANH +2%), and MFA Financial (MFA +4.1%). Also reporting and also higher (after big losses early) is CYS Investments (CYS +0.8%).
  • CYS is a particularly interesting case as it appears to hedge less than most, and thus may be the purest sector play on the yield curve. It's down a whopping 17% this year and trades at more than a 20% discount to Dec. 31 book value.
  • Other players today: AGNC Investment (AGNC +2%), Two Harbors (TWO +1.6%), Chimera (CIM +1.9%), Invesco (IVR +2.2%), Western Asset (WMC +1.3%), AG Mortgage (MITT +2.2%)
  • ETFs: MORL, REM, MORT
  • Previously: Annaly edges higher after Q4 beat (Feb. 14)
  • Now read: Stop, This 13.5% Yield Wants To Take Your Money


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