Negative psychology is playing a role keeping Mreit prices at a discount to BV. If rates keep steady for a while the fear factor will be reduced and these stocks will again trade at premiums to their BV.
Point is that psychology plays an important role re price to BV ratio.
Actually those "accretive" spos were harmful as the funds raised were used to buy increasingly expensive securities with lower yields and spreads. Sure they increased management fees but were no good for the investor when yields rose and security prices fell. It was like chasing ever rising stocks with no thought to pull backs.
I am medically and not financially trained so I would not be competent to analyze their balance sheet etc. However for some reason they might be the only mreit selling at a substantial premium to BV and r also pretty highly leveraged despite being an hybrid. I just do not understand why they r outperforming every other mreit by this huge margin. Yes they have been around since 1989 and have maintained their div.
Anyway I only have about 5k shares so i will let it ride.
Is it time to buy cys RR? Its yielding 17.6% and is down about 60c or 7.2% from 11/18? Is its div safe?
Just shows how short term momentum trading can be dangerous. After thinking CYS had taken a big enuff hit it took another big one today....almost the worst one in its space.
Insta, what makes u so certain economy is strong enuff to taper?
My guess is that bond prices and BV are going to just oscillate rather than drop dramatically as during last summer. If that happens won't the wider spreads help eps?
Just compare the S&P trajectory during GWB's 8 years and Obam's 5.
Yes O isn't the brightest light in the room but he is a darn lot brighter than the repub leadership, Christie excepted. And the T partiers will never allow his nomination.
to buy cys as its yielding 17% and has been going down for a while.
Pair it by shorting wmc which has been relatively strong to maximize profit? If i were a shorter, which I'm not, it might make a reasonable short term gamble. But I will defer to RR who has far greater experience.