There are the ultimate pure play on this and the best risk adjusted return with 13-19% dividends and a big backstop along with major tailwinds.
AGNC, NLY are the two big ones. AGNC is the better play for the headline.
DX, ORC, ARR are the ones that will rip the most with more leverage.
Government Buying Mortgages = BUY MREITS
byu/IWillMakeYouBlush instocks
Posted by IWillMakeYouBlush
2 Comments
Could you exchange a bit more on this?
Its not that simple. If they crash rates by say, 1/2 point, you can expect tons of refis and odds are, if it moved quickly, they didnt have time to hedge for it. mREITs want slow and steady not hit and run BS. If very hard to hedge properly when a lunatic is pumping mortgages.