I think there are all kinds of fears and lack of undertandings driving these shares and the sector lower. This feels very similar to my purchases of bonds in '08 and '09. It's not uncommon for a new issue to be taken to the wood shed. My senior loan funds are getting wacked today as well. Apparently some people who have been published on Seeking Alpha and Motley Fool have just figured out QE3 lowers interest rates and mReits make most of their income from interest. Wellington over at Annaly sealed her company's shares fate by announcing that if Obama won times would be more difficult for at least her company. While her company's latest quarter performance was lagging, others like WMC did well. Tale of two different management teams. It's possible NLY stock is holding up better because of its buyback. That said, however, if I was an Annaly shareholder I would prefer a management change or a liquidation. At this point mReits seem to be pricing in some kind of a catastrophe - higher or lower interest rates - neither of which can really occur unless there is an event like the fiscal cliff or Ben does something mindless like paying people to borrow.