Look @ MBB. MBS is getting hammered. Thats why these MREITS are down. Look at September 13th, see how the fed gets MBS to shoot up in price, then look at november 7th.. and look from there to today.. compare that with AGNC or any other mreit from november 7th to today... Its all about the president getting elected.
This might have something to do with today's action:
Obama election sparks ‘DeMarco trade’ November 12, 2012 9:33 pm
By Stephen Foley in New York and Shahien Nasiripour in Washington
Investors in the US are marking down the prices of securities backed by mortgages written before the financial crisis, anticipating that the re-election of President Barack Obama presages a new effort to help distressed borrowers refinance their loans.
The sell-off is being dubbed “the DeMarco trade” after Edward DeMarco, acting director of the Federal Housing Finance Agency. The Obama administration has quietly told housing industry activists in recent weeks that he will be replaced as head of the agency that supervises government-run mortgage finance agencies Fannie Mae and Freddie Mac.
Mr DeMarco has repeatedly clashed with the administration over its hopes of using Fannie and Freddie to enable more borrowers to write off part of their mortgage debt, a move called “principal forgiveness” that officials believe could stimulate the housing market and the broader US economy. tinyurl.xxx/bjrt7np
Who takes a hit on principal forgiveness? I thought it would be Fannie and Freddie but the way MREITS are dropping it looks like the holders of MBS's would get hit. Aren't contract rights supposed to prevent unilateral confiscation of property?