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iShares Mortgage Real Estate Capped Message Board

  • kentclark51 kentclark51 May 3, 2013 11:08 AM Flag

    DEATH OF REM?????

    Lower margins and prepayments must be taking their toll. Any comments out there?

    Sentiment: Hold

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    • Gordon's article:Sometimes, when the chairman of the U.S. Federal Reserve speaks, my diaphragm pushes on my lungs hard enough to inhibit breathing. It's not that I don't admire Ben Bernanke on a variety of levels. It's just hard to believe that a man of remarkable intelligence is serious when he says, "In light of the current low interest-rate environment, we are watching particularly closely for instances of reaching for yield."

      So members of the Fed are monitoring excessive risk taking, are they? How can anyone refrain from riotous laughter?

      My 80-year-old father in Florida never had a need for higher yielding bonds. In the 20 years between 1988 and 2008, he and his wife were quite content to supplement their pension with an average of 5%-6% interest from CDs. Unfortunately for them, the last of the CDs matured in 2010 and the Fed's seemingly endless quantitative easing effectively killed the collective yield on CDs, treasuries, and investment grade debt. Their only choice to avoid invading principal? Pops had to begin risking IRA dollars in higher yielding bonds and preferred stock."

      bottom line: you have a 3 pronged attack on mREITS...1)fed with narrow spreads...2)SEC & Fed talking about excessive leverage and possible new rules coming....3)and then you have FHA changes coming with more liberal rules to do more underwater refis. There comes a time, people, when you stand aside...let the idiots in D.C finish with their "mucking things up" regs and rules...and then look to possibly reenter these mREIT common stocks, later...later .... I changed to ALL PREFERRED stocks of these companies, with fixed rate payouts, no dilution risk, first to get paid, etc etc...RSOPRB / NRFPRC / NRFPRD / RASPRC....etc etc...key word PREFERRED. @ fixed 8%+ returns

    • Read the articles posted by Forbes. Maybe a one bad quarter(bad timing bets) from AGNC only.

    • AGNC, #2 holding of REM, missed on earnings.

      Sentiment: Hold

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