The Fed mouth will be at it again next week. If they hint of any additional hike(s), I am afraid mREIT will sell off hard again, especially if the long rate reverses its course from today action. I think investors will have to deal with this yield flattening #$%$ for a while.
Last week they filled a total of 3 shares for RSO.B on my order. I would have been #$%$ if there was a commission fee.
I am also moving away from the mREIT common shares to the preferred stocks. With the recent steep selloff, NYMTO now yields over 10%.
Betsy Cohen is the founder of RAS. Her son, Daniel Cohen, was the CEO until Scott Schaeffer took over the position in 2010. Scott used to be an executive at RSO. And Jonathan Cohen, the current CEO of RSO, is Daniel brother.
The Cohen-lead entities have been taken to the woodshed, particularly RAS recently. RAS bonds, RFT and RFTA, are selling at higher discount than most mREIT preferred stocks.
Good to see you back with all vital organs intact. Most mREIT maintains the same dividends for Q4. ARI is the lone star this quarter as they increase the amount from ..44c to .46c. Whatever they are doing is working very well. I think this is the only company in this sector with stock price above book value. Everyone else is selling at substantial discount.
I am just quoting what thewiseman has said below. It didn't make sense to me.
"I believe the Fed does know a recession is coming and is therefore desperately trying to raise rate and there would be at least 2-3 rate hikes in 2016, so rate will end up to be around 1.15% at the end of 2016."
I thought interest rates tend to FALL during a recession. Why would the Fed want to hike rate if they know a recession is coming?
11/21/15: San Francisco Fed President John Williams said there is a "strong case" for raising interest rates as long as U.S. economic data does not disappoint.
Sound to me nothing is set to stone as they still need to interpret economic data in weeks ahead
10/12/15: Fed Bullard reiterated support for rate hike. But he also said this
"May be situation in which policy rate, inflation rate REMAIN LOW either because liftoff doesn’t occur or FUTURE NEGATIVE SHOCKS force a return to zero rates"
If you are so bullish about the economy, why even consider a possible future negative shocks? Clearly you are not sure. That is fine. But just shut the hell up about the rate and do it if you have to.