I have owned REM and MORL and also invested/traded many of the very components that make up the two. For REM you listed other points I do agree with such as liquidity and it's non-leveraged.
I disagree with your main point which seems to be the financial strength of UBS as your deciding factor, there much less risk in the bank itself vs. the health of the the top two companies of the space
Annaly and American Capital Agency. These two companies make up the performance of both funds.
UBS slapped with $545 million in fines
ZURICH--UBS AG became the latest global bank to plead guilty to crimes in the U.S. and was slapped with $545 million in fines after authorities probing the manipulation of foreign exchange rates tore up a three-year-old immunity agreement with Switzerland's biggest lender.....
$545m....chump change for a bank like UBS.
The full story of Jon Carnes, Silvercorp and the BCSC
....Yet any profits Carnes made from shorting Silvercorp have long been eaten up by lawyers’ fees and related costs. He recalls that when he was working in China, he and Huang always worried one of their targets would turn into “a nightmare disaster.”
“We didn’t think it would be Silvercorp, though,” he concedes. It was, after all, a company run by Canadians.
AGNC has been at or above $36 only 4 times in it's history. This occurred between Sept 14 - 18 2012. Somehow channelcat57 invested in this 5 day window at the all time highs. I find this very hard to believe.
Economists slash 2015 growth forecasts: Philly Fed
Economists cut their forecasts for U.S. economic growth in the second quarter and full year, and trimmed expectations for U.S. labor market gains.
Economists see the economy growing at an annual rate of 2.5 percent in the current quarter, according to the Philadelphia Federal Reserve's quarterly survey of 44 forecasters, released on Friday. In last quarter's survey, released in February, growth for this quarter was forecast at 3.0 percent.
Third-quarter 2015 growth was forecast at 3.1 percent, up from an estimate of 2.8 percent in February's survey, though full-year growth for 2015 was forecast at 2.4 percent, down from the previous estimate of 3.2 percent.
The pace of hiring was expected to decelerate in the current quarter compared with previous expectations, with an average rate of monthly nonfarm job growth seen around 195,300 versus a previous forecast of 233,800. For the third quarter, job growth is expected to average 223,300, a touch higher than the prior forecast of 222,000.
Hiring should average 243,900 a month for all of 2015, compared with the prior full-year forecast of 252,500.
The jobless rate was expected to be 5.4 percent at the end of the current quarter and 5.3 percent by the end of the third quarter. The February survey had forecast a rate of 5.5 percent by the end of the current quarter.
The most recent official unemployment rate released by the government showed the jobless rate in April at 5.4 percent.
Fed likely to hit brakes after bad data
U.S. industrial production fell for a fifth-straight month in April due in part to a further decline in oil and gas drilling, painting a lackluster picture of economic growth in the second quarter.
The economy's struggle to pick up steam after a dismal first quarter was underscored by other data on Friday showing a sharp drop in consumer confidence in early May and only a mild rebound in factory activity in New York state.
Coming on the heels of weak retail sales and producer inflation data this week, Friday's reports suggest the Federal Reserve will probably not raise interest rates anytime soon.
"It means in the next month or so we are unlikely to see a massive rebound in growth momentum. These are not the numbers that would inspire confidence in the Fed to tighten policy," said Millan Mulraine, deputy chief economist at TD Securities in New York.
Industrial output slipped 0.3 percent after a revised 0.3 percent drop in March, the U.S. central bank said. Economists had forecast industrial production edging up 0.1 percent after a previously reported 0.6 percent fall in March....
I agree that mREITs are not for conservative retirees, these are for risk takers. Risk takers enjoy trading and investing them and make money.
I disagree that mREITs will continue to fall even with hedges, because rates won't rise very much like you think. They can shoot up very fast to 'a' higher level, but they will not go very far. In this context, mREITs can manage the risk in slowly rising rates with hedges and will be alright go forward.
The bagholders are the fools who bought TBT at $49 (hopefully no one actually did)
"Zacks just put sell rating on AGNC and they have downgraded estimates on earnings again, with negative trend"
Wow Zacks has a sell rating, but EVA Dimensions has a "Overweight" rating. What do you think of that dr_Klumps?
There is nothing alarming of this news, UBS stock would be reacting very negatively you would think, except it is up 30% YTD!
Selling MORL on the basis of this news shows your understanding of the banking business. Suits & settlements are a regularity for big money center banks, they have no impact on the products they provide, lol.
I think to understand MORL you will need to understand the top components, AGNC & NLY, yield curve, spreads and bond market volatility..etc. Helps a lot if you pay attention to global Macro data to navigate the global bond markets.
Sentiment: Strong Buy
"Tomorrow looks bad in the 10 yr. treasury markets, we could hit 2.50% or break that tomorrow. GET INTO TBT AT $49, I got in at $42 all the way down to $39..."
Wow, $49 TBT a real bargin! An obvious blow off top for TBT investors. Reality check creeping in for TBT bulls, 10 yr going south again in a hurry.
Wow, global economic growth must be really taking off huh?? Big sell of in global bond markets. Rates are soaring doomers get really excited with these little sell offs but then a reality check seems come soon after.
Let see, let's take a good look how "great" growth is...Japan recession, Europe recession, China slowing and US is slowing... None of you rate are soaring doomers seem to get it.
Investors are flat YTD without reinvesting dividends. A time to buy (and reinvest dividends).
Sentiment: Strong Buy
"Just as expected a 10 yr treasury at 2.8%"
GDP consensus is 1.1% for Q1 vs 2.2% from Q4. I wonder if a nasty GDP print and a dovish FED will ruin the party in TBT??
Positive free cashflow (revenue less operating costs and CAPEX) of $191k for the month of March; a first in the history of Lynas
Amended financing agreements with both JARE (the Sojitz facility) and the Convertible Bondholder group reduced the cash cost of debt service through to 30 th June 2015 by $52m providing significantly improved liquidity.
Initial cost reduction programme largely complete with more than $35m in annualised savings from reduced overhead and input costs, well in excess of the $26m previously indicated to the market
Cash outflows $14m below estimated cash outflows shown in the December Quarter Appendix 5B
"As foreshadowed in the last quarterly report and again at the time of the release of the half yearly report,
this has been a difficult quarter. Production output was low in the early part of the quarter primarily due
to instability in the Solvent Extraction (SX) phase, specifically the complex SX5 stage which separates the
lanthanum and cerium from the praseodymium and neodymium. This translated to low sales revenue and
negative cash flow during that period. This negative cash flow was further exacerbated by restructuring
charges ($1.5m) and annual charges relating to business insurances ($2.5m).
March results were significantly better. Intensive work improved production output from the Phase 1 SX5
trains. In addition, the recently commissioned Phase 2 SX5 train commenced full production. The business
recorded its first ever month of positive free cash flow (Revenue less costs and CAPEX) in March."
"Based on recent performance the business currently expects to continue to deliver positive free cash flow."
Sentiment: Strong Buy