Opinions on MTGE?

[John3754]

Looking for opinions on MTGE, any information would be appreciated.

Thanks in advance!

 

[Running_Man]

A company that competes with the Federal reserve on Residential Mortgage Backed Securities. Could be hurt by rising interest rates as they are leveraged and drop in asset prices when the FED begins to reverse QE and sell their RMBS. I prefer PennyMac Mortgage PMT in this area but both are highly speculative in nature.

 

[Jmo1969]

I was looking at REIT's today. I looked at 3. NLY, agnc and CIM. NLY and AGNC are mainly agency mortgage backed REIT's that use leverage. Funny thing is, is that they trade at 81% of book value. So they are historically very cheap historically. That have been cheaper. CIM is mor of a non agency REIT so I THINK it uses less leverage. Not sure about this though. It trades at a higher price to book ratio. Dividend yields of > 12%.