Bill Gross and Mortgage REITS

[MichealKnight]

It might be paywalled so I'm quoting parts of it. Don't want it to be "a naked link" but I also don't want it to violate copyright.

https://www.cnbc.com/2022/12/20/bon...as-fed-rate-hikes-hit-the-housing-market.html

"Bond King’ Bill Gross likes these REITs as Fed rate hikes hit the housing market"
The Federal Reserve’s commitment to fighting inflation through increasing rates could have a big impact on the residential real estate market, the Pimco founder said on CNBC’s “Halftime Report” on Tuesday, calling it a “caution” to the housing market. Specifically, if the central bank continues hiking rates, “the ability to equitize some of your housing, which is moving down in price, is going to be severely limited.”

"Nevertheless, he described the state of residential real estate as being “a little bit better” than commercial, and the Bond King has spotted an opportunity in mortgage REITs with yields of 14% to 16%. He identified Annaly Capital Management and AGNC Investment Corp as two he likes, adding that he bought some of the former earlier in the day."

“They depend upon the 30-year mortgage moving down … from 6% to close to 5%,” he said of REITs. “Ultimately if that spread narrows between 30-year mortgages and 10-year Treasurys, that 14%, 15%, 16% is a pretty good return"

"Gross noted that both Annaly and AGNC are “volatile” but said the spreads have widened “so much.”

 

[njhowie]

I no longer listen to Bill Gross since he decided to buy in to bitcoin...interesting how he doesn't mention that any longer.

 

[MichealKnight]

Thanks. That's why I posted this to get people's opinions. Maybe I'm too suspicious of Wall Street for my own good - *but* each time Gross mentioned what he's investing in - the CNBC anchor made SURE that Gross or him - - properly said the stock symbol. Maybe that's a courtesy. But I swear - if I'm selling you something - I'd try to make it easier for you to find also.

 

[aja8888]

Gross also bragged about making $20 million in the gambling that went on during the Wallstreetbets shorting fiasco.

 

[ncbill]

14 to 16 percent yields?

I think it's time for that Will Rogers or Mark Twain, or somebody else's quote:

"I am more concerned with the return of my money than the return on my money."

 

[jazz4cash]

14 to 16 percent yields?

I think it's time for that Will Rogers or Mark Twain, or somebody else's quote:

"I am more concerned with the return of my money than the return on my money."

+1
I have a fairly positive opinion of Bill Gross, but I watched this interview and got nothing actionable from it. I'm going to watch it again just in case I missed something. There's a pretty good interview with him on the Masters in Business podcast hosted by Barry Ritholtz

 

[Koolau]

Bill Gross has always struck me as someone to listen to. He's certainly been around a long time (and, he looks the part.) Having said that, I don't understand REITs well enough to even consider investing in them. YMMV

 

[JoeWras]

Every now and then I click on a subject that I don't understand. In this case, "Bill Gross." Honestly never heard of the guy, have no opinion.

As for housing possibly going down. To that I say: "Ya think?"

I used to be in a REIT fund years ago but got out because I realized I didn't understand what I was investing in.

 

[audreyh1]

Every now and then I click on a subject that I don't understand. In this case, "Bill Gross." Honestly never heard of the guy, have no opinion.

As for housing possibly going down. To that I say: "Ya think?"

I used to be in a REIT fund years ago but got out because I realized I didn't understand what I was investing in.

Oh this guy was very well known for a long time as the famous bond guru heading PIMCO. Was a very frequent talking head and looks like still is. Then he got kicked out of PIMCO. His heir apparent also ended up leaving. Seems like things didn’t go so well after that. I no longer pay attention to this stuff but I do remember Gross was struggling during the long period of low Treasury yields. Looks like he ended up at Janus Capital.

Gross also bragged about making $20 million in the gambling that went on during the Wallstreetbets shorting fiasco.

Interesting. I had stopped following finance shenanigans well before that.