Actually he was answering a question about NLY specifically. Caller asked what about when interest rates go up. Big C said, "Don't worry about it." NLY has gone through these times before without any problem. Now, I know he prefers NLY, but sounds pretty good.
Cramer also says stay away from AGNC. He knows its a ponzi. Pay div issue more shares...rinse and repeat until its dilluted to death and div collapses. Just like ACAS which also manages AGNC. When its div was suspended stock went from 40 dollars to 60 cents. Same will happen here all in good time.
As risk goes this is the most risky dividend stock you can buy..PERIOD
"NLY has gone through these times before without any problem"
How long ago did rates go up?
When rates go up and spreads start to erode for good, mREITS will lose value. They'll still pay market-beating yields, but current holders will be paying for that with their equity.
The correct answer, the one Krusty the Clown didn't give, is that rates won't jump several points overnight. We'll be able to see it coming and reposition our portfolios, to profit, instead of leaving them unadjusted, to lose.
This sector is, in other words, a short-term lock, a mid-term ride, and a long-term risk. We're taking money out of a gold rush. Those last, but only until they play out, and that's never a sudden thing either.