I wish I was smart enough to understand this business, according to those who do understand this NYMT had an excellent quarter. I do know they pay an excellent divi concerning the amount of investment made, hope the Government don`t blow the track up.
Mortgage REITs are enjoying low borrowing costs with the Fed holding the short term rate near zero. This makes them very sensitive to Fed Speak with respect to throttling back QE since investors fear this would signal incremental rate hikes as well. The most recent news I've heard is that they may indeed start tapering but plan on keeping the short rate low. The trick then becomes harvesting dividends while preserving principal. Price declines over the past week have been discouraging.