Share prices for MREITS fell when QE began. The market rightly predicted a flatter yield curve and smaller spreads. Why don't MREIT prices rise while the market anticipates the end of QE? The yield curve will steepen and spreads will get wider. It doesn't make any sense. MREITS want a steeper curve.
I think bond traders are trading on the book values of the MREITS . Ben speaks, the book value moves accordingly. No one needs to be a genius to get that right. MREITS are highly liquid, it is the perfect place for bond traders. These stock prices recover when those bond traders move on a couple months from now.