"Only Agency MBS are considered "safe" in today's market!~"
Keep in Mind, before you make a blanket statement:
Freddie Mac and Fannie Mae's guarantee is based on their own corporate health, and is not backed by the government.
Ginnie Mae also has a more stringent guarantee policy in that it mainly guarantees loans that are insured by the Federal Housing Administration (FHA) or other qualified insurers.
Defaults of FHA mortgages has been on the rise as of late.
Just Sayin, be careful what you believe.
Read the posts this subject and a few others (and throw out all those who keep saying how great CIM was) and you'll have your answers.
Geez, one poster, by his numbers, has lost $21,627 so far on CIM and keeps saying what a great investment/MGT. Wow ! And I thought the goal was to make money..
Just from an outside point of view.... this is what I have noticed:
1. CIM is looking to take a m2m hit this quarter
2. Declining recent dividend history
3. CIM did some portfolio restructuring, there is uncertainty of the near term effect.
That's just what I have seen. MFA is a well respected REIT, look at the hit it took. The fear there seems to be mostly m2m concerns.
CIM hit by the perfect storm. CIM's non agency strategy looked good because it looked like the economy and R.E. markets were improving. They are not and non agency strategy backfired. Too many defaults and interest rates staying low which benefited agency RIET's plus agency doesn't have to worry about defaults. CIM now shifting to mix of agency and non agency to minimize risks but investors rattled by strategy change. Plus, declining dividends and together, investors are nervous. Question mark also re what next dividend and those going forward will be.