But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why you should think about the direction of interest rates
Mortgage REIT investors have finally gotten a taste of what interest rate risk looks like over the past year. For most of the past 30 years, bonds have been a one-way bet.
This also means a REIT will experience a volatile dividend. Most corporations loathe cutting their dividend because of the message it sends to Wall Street, so volatile dividends are generally rare. For REITs, they’re a fact of life.
The company’s leverage ratio increased from 6.35x to 6.63x. By increasing its leverage, CYS magnifies the returns—both up and down—on the portfolio.
Book value per share is a critical metric for mortgage REITs Since REITs are financials, they tend to trade off of two important metrics: Dividend yield Book value per share…
CYS Investments (CYS) is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security (or MBS) space.
Ginnie Mae and the to-be-announced market The Fannie Mae to-be-announced (or TBA) market represents the usual conforming loan—the plain Fannie Mae 30-year mortgage. Meanwhile, Ginnie Mae TBAs are where government…
Fannie Mae and the to-be-announced market When the Federal Reserve talks about buying mortgage-backed securities (or MBS), it’s referring to the to-be-announced (or TBA) market. The TBA market allows loan…
The ten-year bond influences everything from mortgage rates to corporate debt. It’s now the benchmark for long-term U.S. interest rates.
Last week had a decent amount of economic data, particularly the disappointing retail sales numbers that contributed to a strong bond market rally.
Earnings season is in full swing. We’ll hear from homebuilder PulteGroup (PHM) and also mall REIT giant Simon Property Group.
Initial jobless claims are one of the few labor market indicators released every week. Unemployment is a profound driver of economic growth.
The Thomson Reuters/University of Michigan Consumer Confidence Index is an important indicator of the consumer’s perception of the U.S. economy.
Consumption is the U.S. economy’s biggest driver, and it accounts for 70% of GDP. Consumption has been relatively subdued since the recession began.
Most people don’t think industrial data affects office real estate investment trusts (or REITs). But it does influence the top-line growth of commercial REITs like SL Green Realty Corporation (SLG).
The National Federation of Independent Business is a monthly report that contains a wealth of information regarding trends for small businesses.
The Refinance Index rose 10% (from 1,348 to 1,502) as rates finally fell enough to allow refinances. Since mid 2013, refinances had been dropping like a stone.
The MBA Applications Index rose 5.6% after rising 3.8% the week before. This is the second up week after hitting the lowest reading for the MBA Mortgage Applications Index since early 2001.
Mortgage banking has become a lot more competitive as rates increased. The refinance business has fallen off a cliff, and bankers are cutting employees and rates.
Homebuilders use the survey data to measure consumers’ attitude towards future home price appreciation. Mortgage REITs use the survey data to help forecast prepayment speeds and also to gauge consumer sentiment.
In spite of a furious rally in the bond market, which took rates from 2.43% to 2.28%, Ginnie Mae TBAs were more or less unchanged at 106 21/32.