|Bid||7.22 x 800|
|Ask||7.24 x 27000|
|Day's Range||7.22 - 7.28|
|52 Week Range||6.40 - 7.82|
|Beta (3Y Monthly)||0.47|
|PE Ratio (TTM)||10.30|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||0.80 (10.96%)|
|1y Target Est||7.50|
By now you've heard plenty of talking heads on television saying all sorts of scary things about the inverted yield curve for United States Treasury bonds. And if you missed the headlines, you'll be reading them popping up in news feeds and in the papers.Source: Shutterstock A yield curve is the plotting of bond maturities and their yields from shorter-to-longer-term. It shows how the market for any type of bond is being bought and traded. Normally, shorter-term bonds have lower yields than longer-term maturities.This is because the longer the maturity, the greater the risk of inflation baring its claws making for future interest payments. This also means that the eventual principal payment will be worth less in inflation-adjust terms. Longer-term yields tend to be lower because they must also price in credit risk. The longer the maturity, the greater time for credit in any given market sector to gyrate or deteriorate, putting future interest and principal payments at risk.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA normal yield curve should connect the dots of yield on the y-axis and maturities on the x-axis. It normally rises in yield as maturity dates stretch out. What Does Today's Yield Curve Mean?But an inverted yield curve is when shorter-term maturities are yielding more than longer-term maturities. And when it comes to the U.S. Treasury bond market, the generally accepted definition is when the 2-year Treasury yield is lower than the 10-year Treasury yield. * 10 Stocks Under $5 to Buy for Fall This kicked in early yesterday when the 2-year was at a little bit past 6:00 a.m. I was working to finish up my papers with my Bloomberg Terminal humming along. The 10-year dropped to 1.62% and the 2-year was sitting at 1.63%. This hasn't happened since 2007, when on Feb. 22 the spread was a negative 15.41 basis points, or 0.1541%.Today's Trading (In Yield%) for U.S. 2-and-10-Year TreasuriesHistory of Yield Spread between 2 and 10-Year U.S. Treasury Bonds Now since yesterday morning, the bond market has sent the spread back to positive, which is normal, for the 2-and-10-year maturity yields. Before I get into what this means, what is causing it, why you should care and what you need to do -- let's look at what the U.S. Treasury bond market has done over the trailing year.From Aug. 14, 2018 through to yesterday, Treasury yields outside of the 1-month bills have all dropped, and longer maturities have dropped even more.In the next graph I've plotted the curves for both dates and the resulting yield changes.U.S. Treasury Bonds (Actively Traded) Aug. 14, 2018 and YesterdayWhat has been causing this to occur? First up, the U.S. Treasury has been issuing more bonds with shorter maturities for some time as part of their funding for the U.S. government. This means more supply, which will influence market pricing. Second, inflation has been low and generally falling over the past many months.The Personal Consumption Expenditure Index, which is the prime gauge used by the the Federal Reserve and its Open Market Committee, has gone from bobbling around the 2% down to a current level of 1.6%. The PCE is a much better and more broad inflation gauge than the Consumer Price Index, as the PCE measures all consumption and not the contrived basket of goods and implied costs for other things including residential expenses.U.S. Core Personal Consumption Expenditure IndexAnd the core PCE, which is also calculated in quarterly Gross Domestic Product data, is running for the second-quarter data release at a rate of 1.4% in the deflator calculations of the GDP growth rate of 2.4%.So, inflation is low and down, and well below the stated target range of the FOMC of above 2% -- and even higher for what it deems as a healthy level for a growing economy.This means that while the FOMC has already reversed course with its target range for Fed funds at its July 31 meetings, I think it is likely that it will further ease in its meetings concluding on Sept. 18, Oct. 30 and Dec. 11 of this year. This reversal of target ranges for Fed funds is reminiscent of when it reversed in 1995-1996 and in 1998.This makes longer-term bonds all the more valuable to lock in yields for the longer term. Now normally, falling yields means falling GDP growth and a weakening economy. But that isn't as much the case right now. Growth in the U.S. economy remains good as just noted above for the most recent data, and there is good reason to see it continuing. U.S. consumer spending drives the vast majority of the economy. And my preferred gauge of consumers is the Bloomberg Consumer Comfort Index, which I refer to as the "Comfy Index."Bloomberg Comfy IndexSince late 2016, the Comfy Index has been climbing and is very well-positioned in the excellent range. This means that consumers should be eager to spend and have the ability to do so -- particularly as U.S. wage growth has continued to be multiples of core PCE inflation.And businesses continue to expect rising activity over the next six months, as I utilize the Federal Reserve Bank of New York's survey data for projections.U.S. Business Leaders Expected Business Activity (Six Months Forward)So, rather than the sickening economy that many are worried about, the U.S. economy continues to show better conditions. What Is Happening With the U.S. EconomyBut what really is happening is that the U.S. is the haven economy in a world where Europe is in trouble and the leading economies of Asia are slowing. And as a result, yields for government bonds from the leading issuers in Europe and Asia are increasingly heading into negative yields.Negative yield come as coupon rates (stated interest rates) are issued at low or near-zero rates. The markets at auction as well as the secondary market bids the bonds to prices above par ($100), which brings the yields below zero. Take for example a German bund (government bond) with a coupon of 0.5% and a maturity of Feb. 15, 2025. It has recently been trading in the market for $106.75 which means that for each bund you'll pay $1,067.50 euros along with $2.19 euros in accrued interest for an effective yield to maturity of -0.69%. That's because the bund will mature at $100, or $1,000 euros, which prices in a loss of $67.50 euros and offsets the coupons.Negative yields and interest rates around the world beyond the U.S. are rapidly becoming a growing problem as the amount of bonds with negative yields keeps climbing by the day to a current level of $15.8 trillion.Negative Yield Debt Around the GlobeThis in turn is making the U.S. bond market all the more attractive with positive yield, and is driving more buying from investors in the U.S. and beyond. And with more buying of longer-term bonds, yields are down and prices are up. Why Investors Should Care About the Inverted Yield CurveYou should care, because this is good -- for now -- for the U.S. economy. Lower interest rates and yields means lower borrowing costs for everyone from the government to corporations and individuals. And this in turn should further aid the growth of the U.S. economy, along with lower inflation pressures over time with lower borrowing costs.And this shows up in how well U.S. bonds are performing in total return from all bonds to my preferred markets in higher-yielding corporate bonds and municipal bonds.Look at the performance year to date for all U.S. bonds (in aggregate), corporate high yield and municipal bonds as tracked by Bloomberg Barclays.U.S. Aggregate Bond (White), U.S. High Yield Corporates (Orange) and Municipal Bonds Total ReturnOverall, U.S. bonds in aggregate have returned 8% year to date. Corporate high-yielding bonds have returned almost 10% and municipal bonds generated 7%. Securities to Focus OnNow, stocks have been choppy recently -- with trade tariff concerns and global economic trouble outside the U.S. But not all stocks have been in the crosshairs of sellers. I continue to guide my Profitable Investing subscribers to hone in on U.S.-focused stocks. This list includes real estate investment trusts such as my favorite W.P. Carey (NYSE:WPC) and utilities such as my favorite NextEra Energy (NYSE:NEE). And these sectors have been and should continue to benefit from lower U.S. interest rates and yields.And with mortgage loans climbing with rising property market values and consumer confidence, U.S. mortgage investment companies such as my MFA Financial (NYSE:MFA) should continue to deliver.But for U.S. bonds -- focus on the BlackRock Credit Allocation Income Trust (NYSE:BTZ) for corporate and other bonds trading at a discount to net asset value by 8.6% and yielding 5.9%. Investors should also focus on the Nuveen Municipal Credit Income Fund (NYSE:NZF) trading at a discount of 3.8% to net asset value and yielding a tax-equivalent yield of roughly 7.5%.The yield curve isn't a threat -- but simply a measure of market activities and developments as well as an indicator of expectations going forward. It is a tool for investors which should be used and not just feared.Now that I've presented my way to invest with an inverted yield curve, you might like to see more of my market research and recommendations. For more -- look at my Profitable Investing. Click here to learn more.In addition, if you find yourself in San Francisco Aug. 15-17, please join me at the MoneyShow. There I'll be presenting my economic and market analysis and my latest investment themes and recommendations.Neil George is the editor of Profitable Investing and does not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post What an Inverted Yield Curve Means (And What It Doesnat) appeared first on InvestorPlace.
NEW YORK , Aug. 9, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) announced today that in accordance with the terms of its 7.50% Series B Cumulative Redeemable Preferred Stock, the Board of Directors ...
MFA Financial (MFA) delivered earnings and revenue surprises of 11.11% and -14.20%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
NEW YORK , Aug. 7, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) today announced its financial results for the second quarter ended June 30, 2019. Second Quarter 2019 and other highlights: MFA generated ...
MFA Financial (MFA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
NEW YORK , July 17, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) plans to host a live audio webcast of its investor conference call on Wednesday, August 7, 2019 , at 10:00 a.m. (Eastern Time) to ...
MFA Financial Inc NYSE:MFAView full report here! Summary * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for MFA with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MFA. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $2.65 billion over the last one-month into ETFs that hold MFA are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Looking for stocks with high upside potential? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 12.1% in 2019 (through May 30th). Conversely, hedge […]
NEW YORK , June 12, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) announced today that its Board of Directors declared a regular quarterly cash dividend of $0.20 per share of common stock for the ...
NEW YORK, May 30, 2019 /PRNewswire/ -- MFA Financial, Inc. (MFA) (the "Company") announced today the pricing of an underwritten public offering of $200 million aggregate principal amount of its 6.25% convertible senior notes due 2024 (the "Notes") at an issue price of 99.0%, plus accrued interest, if any, from June 3, 2019. The offering is expected to close on June 3, 2019 and is subject to customary closing conditions. The Company has granted the underwriters an option to purchase up to an additional $30 million aggregate principal amount of the Notes to cover over-allotments.
NEW YORK, May 29, 2019 /PRNewswire/ -- MFA Financial, Inc. (MFA) (the "Company") announced today that it has commenced an underwritten public offering of $200 million aggregate principal amount of convertible senior notes due 2024 (the "Notes"), subject to market and other conditions. The Company expects to grant the underwriters a 30-day option to purchase up to an additional $30 million aggregate principal amount of the Notes to cover over-allotments. The Company intends to add the net proceeds of the offering to its general corporate funds, which the Company may use for general working capital purposes, including to invest in additional residential mortgage-related assets, including but not limited to, residential whole loans, MBS, CRT securities and investments related to mortgage servicing rights, and for working capital, which may include, among other things, the repayment of amounts outstanding under its repurchase agreements.
NEW YORK , May 28, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) today announced that its management is scheduled to participate in the Keefe, Bruyette & Woods 2019 Real Estate Finance & Asset Management ...
NEW YORK , May 20, 2019 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) announced today that in accordance with the terms of its 7.50% Series B Cumulative Redeemable Preferred Stock, the Board of Directors ...
The New York-based company said it had net income of 19 cents per share. Earnings, adjusted for non-recurring gains, came to 17 cents per share. The real estate investment trust posted revenue of $141 ...