Risks Remain Prevalent For Mortgage REITs

Image shown: Mortgage REITs have held up better than master limited partnerships (MLPs) since mid-2015, but they haven’t exactly done well. For income investors, they may be the lesser of the two pain areas, but we’re still not really excited about them. By Kris Rosemann “The fundamental point remains sound: these are highly-levered, risky entities that depend on a number of factors beyond their control to generate profits.” – Kris Rosemann The Yield Curve Curve Is A Key Driver The mortgage REIT (mREIT) industry is not easy for many to understand, and even a great understanding of the space may not lead to investment success either. Many have stated that this area is not one in which individual investors should … Read more

Valuentum Strives To Be the Gold Standard in Equity Research

This article was originally published July 17, 2013. Valuentum’s Best Ideas portfolio and Dividend Growth portfolio continue to exceed their respective goals, but the firm’s research on the mortgage REIT industry has put it in a class by itself. In this article, please find a graphic portrayal of its call on the mREIT industry. Maxim, KBW, RBC, Edward Jones, Seeking Alpha, Wunderlich, Citi, Evercore, and JP Morgan were all behind the curve. Will still more research shops come around? 1)    September 13, 2012. 2)    May 6, 2013. 3)    May 6, 2013. http://blogs.barrons.com/focusonfunds/2013/05/06/mortgage-reit-funds-in-focus-jefferies-says-investors-underestimate-mreit-risks/ 4)    May 26, 2013. /20130526_1 5)    May 30, 2013. http://www.thestreet.com/story/11937184/1/mortgage-reit-sell-off-overdone-on-rate-fears-kbw-rbc.html?puc=yahoo&cm_ven=YAHOO 6)    June 7, 2013. http://seekingalpha.com/symbol/agnc/currents/2 7)    June 24, 2013. http://seekingalpha.com/article/1515952-american-capital-agency-corp-book-value-resilience-in-the-face-of-rates-back-up 8)    July 8, 2013. http://www.analystratings.net/ratings/Downgrades/7-8-2013/ 9)    July 9, … Read more