Market Vectors® Mortgage REIT Income ETF

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  • uploads/// year bond yield LT
    Consumer

    Weekly economic recap – Dovish comments from the Fed

    The 10-year bond is the basis for all mortgage pricing Long-term interest rates are priced off the benchmark long-term bond, which is the ten-year Treasury. These days, the ten-year bond reacts to economic data through the Federal Reserve’s asset purchase program, also known as quantitative easing (QE). As a general rule, economic data that shows […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities rallied with bonds about 1/4

    The main action driving TBAs specifically seems to be out of Washington, between the Fed purchases and the government’s policies to drive origination.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY leverage
    Financials

    Recommendation: REITs are getting bullish—should you?

    2013 was a very difficult year for mortgage REITs, as the Fed finally began to lighten its footprint in the mortgage market by reducing asset purchases.

    By Brent Nyitray, CFA, MBA
  • uploads///Price NRZ SPY
    Company & Industry Overviews

    Mortgage REITs Rose among the Volatile Market

    The week ending December 24, 2015, reaped positive results for all of the mortgage REITs. The VanEck Vectors ETF Trust (MORT) ended with returns of 6.1%.

    By Steve Sage
  • uploads///CIM Q
    Fund Managers

    Chimera posts growth in third quarter profit and interest income

    Chimera’s core earnings grew to $116 million compared to $93 million in the year-ago period. Growth was mainly due to an increase in net interest income.

    By Samantha Nielson
  • Weekly economic recap: why REITs are crushed while homebuilding is bullish
    Consumer

    Weekly economic recap: why REITs are crushed while homebuilding is bullish

    The ten-year bond is the basis for all mortgage pricing Long-term interest rates are priced off the benchmark long-term bond, which is the ten-year Treasury. These days, the ten-year bond reacts to economic data through the Federal Reserve’s asset purchase program, also known as quantitative easing (QE). As a general rule, economic data that shows […]

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Why Ginnie Mae securities followed bonds lower

    The ten-year bond sold off, with yields increasing from 2.19% to 2.27%. Ginnie Mae TBAs followed, dropping from 104 23/32 to 104 20/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae securities shake off the end of quantitative easing

    The ten-year bond sold off, with yields increasing from 2.27% to 2.34%. Ginnie Mae TBAs bucked the trend, rising from 104 20/32 to 104 25/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securitires sell off as bonds reverse their course

    Fannie Mae MBS fell slightly as the bond market sold off as investors added risk. The Fannie Mae 3.5% TBA started the week at 103 24/32 and lost a quarter to close at 103 16/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why mortgage-backed securities were calm ahead of more Fed tapering

    Mortgage-backed securities (both Fannie and Ginnie) were flat as the bond market barely moved. On Wednesday, the FOMC released the minutes from their January meeting.

    By Brent Nyitray, CFA, MBA
  • uploads///bxmt pe
    Earnings Report

    How Does Blackstone Mortgage Trust Compare to Its Peers?

    Peers have outperformed Blackstone Mortgage based on PBV, but Blackstone is ahead of its peers based on PE. ETFs have outperformed Blackstone based on PE, but Blackstone is ahead based on price movement and PBV.

    By Gabriel Kane
  • uploads///MR homeownership rate
    Financials

    The mortgage market without the government-sponsored entities

    Fannie Mae and Freddie Mac are probably not going to exist in the future. Both Democrats and Republicans recognize the need to reduce the government’s footprint in the U.S. residential real estate market.

    By Brent Nyitray, CFA, MBA
  • Why Fannie Mae securities sold off to close at 105 3/32
    Financials

    Why Fannie Mae securities sold off to close at 105 3/32

    Fannie Mae MBS sold off a bit on a weak bond market. The Fannie Mae 4% TBA started the week at 104 29/32 and lost about 5 ticks to close at 105 3/32.

    By Brent Nyitray, CFA, MBA
  • uploads/// SP  Index
    Company & Industry Overviews

    How REIT Classification Benefits Preferred Securities

    S&P Dow Jones Indices and MSCI (MSCI) have decided to shift stock exchange-listed equity REITs and other listed real estate companies from the financial sector (XLF) to a new real estate sector.

    By VanEck
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae securities catch a bid on the bond rally

    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 originators to take individual loans and turn them into a homogeneous product that you can trade. TBAs settle once a month. Fannie Mae loans go into Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae TBAs are unchanged despite a bond market sell-off

    The front-month Ginnie Mae TBAs were bid up as bonds rallied eight basis points. Ginnie Mae TBAs began the week at 106 21/32 and ended up in the same place. The underlying bond market sold off 12 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae Securities Sell Off With Bonds To Close At 103 12/32

    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 originators to take individual loans and turn them into a homogeneous product that you can trade. TBAs settle once a month. Fannie Mae loans go into Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities are flat amid a declining bond market

    The front-month Ginnie Mae TBAs worked their way higher as bonds rallied on weak economic data. Ginnie Mae TBAs began and finished the week at 106 17/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae TBAs sold off in sympathy with the bond market

    The main action driving TBAs specifically seems to be out of Washington, between the Fed purchases and the government’s policies to drive origination.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae Securities Buck The Recent Trend And Rally

    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 loans go—such as the federal housing administration (or FHA) and veterans affairs (or VA) loans. The biggest difference between a Fannie Mae mortgage-backed security (or […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs fell as the 10-year bond yield dropped 8 points

    The ten-year bond yield fell off 8 basis points last week, and TBAs followed. Bonds had been benefiting from the “risk-off” trade.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities followed bonds lower last week

    Fannie Mae MBS followed the bond market lower. Last week was when most of the Street rolled its April exposure to May. Liquidity has been downright terrible in the TBAs lately.

    By Brent Nyitray, CFA, MBA
  • uploads///Leverage
    Financials

    Leverage and mortgage REITs – Part 2

    Leverage and Mortgage REITs – Part 1 How a mortgage REIT typically does it Most mortgage REITs use repurchase agreements to fund their balance sheet. A repurchase agreement (repo) is basically a secured loan. The REIT will pledge the mortgage backed securities they just bought as collateral for a loan. It is actually an agreement […]

    By Brent Nyitray, CFA, MBA
  • uploads///bxmt pm
    Earnings Report

    Blackstone Mortgage’s Net Income and EPS Rose in 3Q15

    Blackstone Mortgage reported net income from loans and other investments of $87.0 million in 3Q15, an increase of 74.6%. Net income and EPS increased to $67.8 million and $0.72, respectively.

    By Gabriel Kane
  • uploads///Fannie Mae TBA
    Financials

    TBAs were flat and the 10-year bond rose 1 basis point last week

    The ten-year bond yield rose 1 basis point last week, and TBAs were flat. Bonds had been benefiting from the “risk-off” trade.

    By Brent Nyitray, CFA, MBA
  • uploads///Sovereign Yields
    Financials

    Is it something Bernanke said? Or something else?

    Sovereign yields have been rising since the beginning of May Investors in the U.S. have been focused on the rising yield of the 10-year bond since the beginning of May. Since bottoming out at 1.63% on May 1st, the U.S. 10-year yield has been rising in a dramatic fashion, to close at 2.17% as of […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Jobs releases and Ukraine tensions hit Fannie Mae TBAs and bonds

    The ten-year bond yield rose 15 basis points last week, so it’s no surprise that Fannie Mae TBAs got hit. Bonds had been benefiting from the “risk-off” trade,

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae securities follow bonds higher, closing at 104 15/32

    The ten-year bond rallied, with yields increasing from 2.34% to 2.3%. Ginnie Mae TBAs followed the trend, rising from 104 12/32 to 104 15/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBA securities shrug off the March FOMC meeting

    Given that another $10 billion in tapering was already priced in, TBAs didn’t react to the FOMC meeting. MBS spreads tightened as MBS rallied in the face of a bond market sell-off.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBA’s sell off in sympathy with other bond markets

    Mortgage backed securities are the starting point for all mortgage market pricing, and are the investment of choice for mortgage REITs When the Federal Reserve talks about buying mortgage backed securities, it is referring to the To-Be-Announced (TBA) market. The TBA market allows loan originators to take individual loans and turn them into a homogeneous […]

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities fell to 105 26/32 on a bond sell-off

    The front-month Ginnie Mae TBAs were bid up as bonds rallied eight basis points. Ginnie Mae TBAs began the week at 106 8/32 and fell to 105 26/32. The underlying bond market sold off 15 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Dallas Fed
    Financials

    Dallas Fed Manufacturing Index falls in June, but still positive

    The Dallas Fed Manufacturing Index is a manufacturing-focused index of business activity The Dallas Fed conducts its Texas Manufacturing Survey monthly, and it’s similar to many of the other regional Fed surveys, like the Empire State Manufacturing Survey, the Chicago Fed National Activity Index, or the Philly Fed. These are all diffusion-type indices that ask respondents whether a […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae share of to-be-announced market ticks up with bonds

    The main action driving the to-be-announced market seems to be from Washington, between the Fed purchases and the government’s policies to drive origination.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities were roughly flat, closing at 105 27/32

    The front-month Ginnie Mae TBAs were roughly flat as bonds rallied four basis points. Ginnie Mae TBAs began the week at 105 28/32 and fell to 105 27/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Leverage
    Financials

    Leverage and Mortgage REITs – Part 4

    Leverage and Mortgage REITs – Part 4 Liquidity risk Even if borrowers make their payments, jitters in the mortgage backed security market can hit liquidity, making it difficult (if not impossible) for REITs to reduce leverage. REITs are also at the mercy of their bankers, who can pull lines of credit (or simply refuse to […]

    By Brent Nyitray, CFA, MBA
  • uploads///Price comparison btwn tech
    Macroeconomic Analysis

    Positioning Your Portfolio in the Rising Rate Environment

    Sectors with companies that usually have a high level of debt such as utilities and telecommunications are the most affected by rate hikes.

    By Steve Sage
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securities rally with bonds, closing at 103 17/32

    The Fannie Mae 3.5% TBA started the week at 103 1/4 and picked up nine ticks to close at 103 17/32. Market participants may also be forecasting less volatility in interest rates.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae Securities Follow Bonds Higher, Affecting REITs

    Ginnie Mae and the to-be-announced (or TBA) 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 loans go, such as the federal housing administration (or FHA) and veterans affairs (or VA) loans. The biggest difference between a Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securities defy the bond sell-off, rising by an eighth

    Fannie Mae MBS fell slightly as the bond market sold off as investors added risk. The Fannie Mae 3.5% TBA started the week at 103 16/32 and picked up an eighth to close at 103 12/32.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    An Old Headache Returns: Increased Prepayment Speeds Up

    The Mortgage Bankers Association (or MBA) Refinance Index rose 66% from 1,349 to 2,245 as rates finally fell enough to allow refinances.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs pick up 20 ticks as bonds rally

    The Fannie Mae 3.5% TBA started the week at 105 2/32 and picked up 20 ticks to close at 105 22/32. Bonds rallied 16 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Leverage
    Financials

    Leverage and mortgage REITs – Part 1

    The use of leverage is how REITs provide a high yield from low-yielding instruments Mortgage REITs, particularly agency REITs, use leverage to enhance returns. Agency REITs invest solely in government mortgage backed securities – either Fannie Mae, Freddie Mac, or Ginnie Mae. These securities do not have credit risk – in other words, even if […]

    By Brent Nyitray, CFA, MBA
  • uploads///
    Macroeconomic Analysis

    Why We Need to Track the Conference Board Leading Economic Index

    The main reason for the popularity of the Conference Board Leading Economic Index is its successful track record when predicting changes to the business cycle.

    By Ricky Cove
  • uploads///FICO Score
    Macroeconomic Analysis

    Mortgage Applications Rose despite Rate Hike

    The Federal Reserve’s decision to increase the federal funds rate by 0.25% on December 16, 2015, had minimal impact on the mortgage volume.

    By Steve Sage
  • uploads///Prime Loan Rate
    Macroeconomic Analysis

    What Does the Future Hold for Mortgage REITs?

    US markets and investors might have taken the Fed’s interest rate hike positively, but it’s important to explore the future outlook of mortgage REITs.

    By Steve Sage
  • uploads///Prices of NLY  to
    Macroeconomic Analysis

    The Rate Hike’s History and Its Impact on Mortgage REITs

    Mortgage REITs like New Residential Investment, Chimera Investment, and American Capital Agency will witness the impact of a rate hike for the first time.

    By Steve Sage
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae securities fall 3 ticks with the bond market

    The Fannie Mae 3.5% TBA started the week at 104 22/32 and gave up 3 ticks to close at 104 19/32. The ten-year yield increased 10 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs sell off with bonds: What you need to know

    The Fannie Mae 3.5% TBA started the week at 105 22/32 and gave up 22 ticks to close at 105. The ten-year yield increased 32 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///CIM
    Fund Managers

    Omega Advisors further reduces its stake in Chimera Investment

    Omega Advisors further lowered its position in Chimera Investment (CIM) during the current quarter.

    By Samantha Nielson
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs follow bonds higher and pick up 7 ticks

    The Fannie Mae 3.5% TBA started the week at 105 1/32 and picked up 7 ticks to close at 105 7/32. Bonds rallied 4 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    New FHA guidelines throw Ginnie Mae securities for a loop

    Ginnie Mae TBAs rallied 9 ticks to close at 105 20/32. However, they underperformed Fannie Mae TBAs, which rallied 17 ticks.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae securities rally, driving mortgage REITs

    The ten-year bond sold off, with yields increasing from 2.16% to 2.25%. Ginnie Mae TBAs rallied to close at 104-19.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae TBAs Shrug Off the Bond Market Sell-off

    Ginnie Mae TBAs are where government loans go, such as the federal housing administration and veterans affairs loans.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs Hit By Declining Bond Market

    The Fannie Mae 3.5% TBA started the week at 103 28/32 and gave up 14 ticks to close at 103 14/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae TBAs Not Immune To Bond Market Sell-off

    The ten-year bond had a big sell-off, with yields decreasing from 2.16% to 2.34%. Ginnie Mae TBAs fell as well, dropping from 104 19/32 to 104 7/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae Securities Follow Bonds Higher

    As a general rule, a lack of volatility is good for mortgage REITs, which hedge some interest rate risk. Increasing volatility in interest rates increases the cost of hedging.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities caught a bid as bonds rallied strongly

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 26/32 and picked up about an eighth to close at 105 30/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs rally with the bond market

    The biggest difference between a Fannie Mae mortgage-backed securities (or MBS) and a Ginnie Mae MBS is that Ginnie’s have an explicit guarantee from the federal government. Fannies don’t have a guarantee. However, there’s a “wink wink, nudge nudge” guarantee.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae TBAs ended up unchanged on a data-heavy week

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 17/32 and ended up at the same place.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs catch a bid as bonds rally, driving mortgage REITs

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 13/32 and ended up picking up about a quarter of a point.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae securities sell off with bonds to close at 106 4/32

    The front-month Ginnie Mae TBAs were sold off as bonds tanked on some strong economic data. Ginnie Mae TBAs began the week at 106 23/32 and lost up just about 5/8 to close at 106 4/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae securities lose 0.5 points, affecting REITs like Annaly

    Fannie Mae MBS sold off a bit. The Fannie Mae 4% TBA started the week at 106 and ended up losing about half a point.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities ticked down on a flat bond market

    Fannie Mae MBS followed the bond market higher. Liquidity has been downright terrible in the TBAs lately. The Fannie Mae 4% TBA started the week at 105 10/32 and ended up dropping 1/16.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities benefit from international instability

    We’re exiting the seasonally weak period in the housing market, as spring selling season is now more or less beginning.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae TBAs rally as Wall Street questions a January taper

    The Street may be re-assessing the probability of another tapering at the January FOMC meeting. This time of the year is typically slow.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs rally with originators on the sidelines

    Mortgage-backed securities are the starting point for all mortgage market pricing and the investment of choice for mortgage REITs.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs sold off and underperformed the bond market

    The stronger-than-expected economic data last week sent bond yields lower, which increased mortgage rates, as TBAs sold off with bonds.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs sell off on stronger-than-expected analyst outlook

    Last week, we had a number of stronger economic reports, which drove the ten-year bond yield up 11 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield historical
    Financials

    Recommendation: What does the Fed’s move mean for REITs?

    The Fed decided to stand pat The Fed decided to maintain its current pace of asset purchases at the FOMC meeting last week. The Fed was surprised at the market’s reaction, but it shouldn’t have been. At the last Fed meeting, Bernanke said that the Fed expects unemployment to continue to fall (check), and if […]

    By Brent Nyitray, CFA, MBA
  • uploads///MR homeownership rate
    Financials

    The role of Fannie Mae and Freddie Mac during the housing bubble

    When the real estate market began turning south, Fannie Mae found itself in trouble as the value of its mortgage-backed security portfolio began to take credit losses.

    By Brent Nyitray, CFA, MBA
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