Mortgage play: Go with MORL over MNRK ... it's a no-brainer at 27% yield!!!
"The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) is about a month away from its first anniversary but has already solidified its reputation as the highest yielding U.S.-listed ETP. MORL’s monthly distributions to owners totaled nearly $1.30 per note during the most recent quarter. Given its current trading price of about $19.20, this places the current yield of MORL on the north side of 27%."
Here's what you missed in the UBS press release about the distributions:
"The Current Yield is not indicative of future coupon payments, if any, on the ETN. You are not guaranteed any coupon or distribution amount under the ETN. "
'no-brainer' is correct , in a way, as only someone with no brains would call that a 27% yield.
MORL is one of the most dangerous securities imaginable. It's also down double digits in a strong year. All the silly negative mortgage #$%$ you have posted erroneously about MNRK actually does apply to MORL.
His advice is similar to the advice he mistakenly took himself last fall when he got this brilliant idea to short MNRK stock and buy the preferred. Wow, what a genius. He's been sour grapes ever since.