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ARMOUR Residential REIT, Inc.

  • Reasons To Buy This 17% Yielder

    By Adnan Khan - May 20, 2013 | Tickers: AGNC, NLY, ARR

    American Capital Agency’s (NASDAQ: AGNC) first quarter results caused a lot of concern amongst the investors. The markets began to price in a premature easing halt by the Fed. As a result, the mortgage rates started climbing up. This took a large chunk out of the book value of American Capital Agency causing investors to flee. However, investors don’t need to be worried anymore, as American Capital Agency more »

  • The Fed's Asset Purchases Continue to Hurt mREITs

    By Rupert Hargreaves - May 17, 2013 | Tickers: AGNC, ARR, CYS, HTS

    mREITs continue to feel the pressure as the Federal Reserve’s continual asset buying depresses the yields on their mortgage assets, squashing interest received by the companies, their net income and investor returns.

    mREITs, or mortgage real estate investment trusts, work by borrowing money in order to purchase mortgage backed securities (MBS). The borrowing is usually in the form of a repurchase agreement (REPO) for which the company pays a more »

  • Two mREITs To Buy, One To Avoid

    By Adnan Khan - May 17, 2013 | Tickers: AGNC, NLY, ARR

    Mortgage REITs have remained investors’ favorite for a very long time due to their elevated (double digit) dividends yields. Some of the most followed REITs are offering dividend yields in excess of 17%, when the 10-year Treasuries are only offering 1.92%. However, these elevated dividend returns are not without elevated risk. mREITs have a complex business model. It is a model in which the management does not have complete more »

  • mREITs Well Positioned for FSOC Themes

    By Adnan Khan - May 8, 2013 | Tickers: AGNC, NLY, ARR

    An article in The Wall Street Journal stated that mortgage REITs have come under the microscope as regulators worry that they pose a risk to the financial system. It was suggested back then that the Financial Stability Oversight Council (FSOC), which comprises some of the top U.S. financial regulators, will report the sector in its annual report.

    The annual report was released last week, providing a sigh of relief more »

  • Reaching for Returns by Using Lower Priced REITs

    By Jeff Stouffer - May 8, 2013 | Tickers: ARR, DCT, IVZ, ROOF, NCT

    The explosive growth of exchange-traded funds has brought several sponsoring competitors to the marketplace. It is business as usual when new products are brought to market and all kinds of purveyors are seeking a foothold in the new frontier. There has never been, or will be, a shortage of product designers and marketers in the investment world. One such product family is the Index IQ group and one REIT based more »

  • This Agency mREIT Could Expand its Spread

    By Adnan Khan - April 21, 2013 | Tickers: AGNC, NLY, ARR, CYS

    Cypress Sharpridge Investments (NYSE: CYS) reported its first quarter results on April 17 with an earnings beat. The company reported EPS of $0.32, $0.02 ahead of the consensus mean expectations. CYS Investments is a pure-play mortgage REIT since it invests exclusively in Agency mortgage backed securities. Therefore, the trends visible in its first quarter performance could be seen in the results of other pure-play mortgage RIETs including American more »

  • This Agency mREIT Could Expand Its Spread

    By Adnan Khan - April 18, 2013 | Tickers: AGNC, NLY, ARR, CYS

    Cypress Sharpridge Investments (NYSE: CYS) reported its first quarter results on April 17, 2013 with an earnings beat. The company reported EPS of $0.32, $0.02 ahead of the consensus mean expectations. CYS Investments is a pure-play mortgage REIT since it invests exclusively in Agency mortgage backed securities. Therefore, the trends visible in its first quarter performance could be seen in the results of other pure-play mortgage RIETs including more »

  • Buy This Under Valued Agency mREITs

    By Adnan Khan - April 18, 2013 | Tickers: AGNC, NLY, ARR, CYS

    Cypress Sharpridge Investments (NYSE: CYS) reported its first quarter results on April 17, 2013 with an earnings beat. The company reported EPS of $0.32, $0.02 ahead of the consensus mean expectations. CYS Investments is a pure-play mortgage REIT since it invests exclusively in Agency mortgage backed securities. Therefore, the trends visible in its first quarter performance could be seen in the results of other pure-play mortgage RIETs including more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 16, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 16, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 14, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say Mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Buy These mREITs Before They Defy Gravity

    By Adnan Khan - April 13, 2013 | Tickers: AGNC, NLY, ARR, CYS

    The timing of the Fed’s third round of quantitative easing is among the top discussed topics today. While the exit has consequences for the general economy, it will have a much direct impact on the US financial sector, particularly the mortgage REITs sector. Under QE3, the Fed is buying mortgage backed securities at a record pace with the aim of bringing down mortgage rates. Mortgage REITs hold mortgage backed more »

  • Insiders Are Crazy About These REITs

    By Meena Krishnamsetty - April 12, 2013 | Tickers: MTGE, ARR, NCT, SPG, TWO

    Company insiders should be strongly resistant to buying shares, since it increases company-specific risk rather than diversifying their wealth. Therefore, insider purchases should signal confidence in the company, and it turns out that stocks bought by insiders- particularly multiple insiders- do outperform the market on average (see our analysis of studies on insider trading).

    Real estate investment trusts (REITs) often pay high dividend yields, since these companies are required to more »

  • Buy mREITs: Fed Bond Buying Could Cool Down

    By Adnan Khan - April 10, 2013 | Tickers: AGNC, NLY, ARR, CYS

    If macroeconomic data keeps coming in better than expected, you can expect the Fed’s stimulus programs, including QE3, to cool down, reported Reuters. The US Government and the Fed in particular have been busy providing the economy with stimulus by buying fixed income securities worth $85 billion a month.

    The objective of this massive bond buying was to push long-term rates down and encourage cheap borrowing. Further, the stimulus more »

  • Drivers of Growth for Pure Play mREITs

    By Adnan Khan - April 10, 2013 | Tickers: AGNC, NLY, ARR

    The latest weekly survey conducted by the Mortgage Bankers Association is no less than a driver for the likes of Annaly Capital Management (NYSE: NLY), American Capital Agency (NASDAQ: AGNC), and ARMOUR Residential REIT (NYSE: ARR). If the mortgage rates and first mortgage activity continue their upward journey, you can expect dividend hikes by these Agency mortgage REITs. Therefore, investors looking for regular income should buy the stocks and keep more »

  • Buy mREITs: Fed Bond Buying Could Cool Down

    By Adnan Khan - April 8, 2013 | Tickers: AGNC, NLY, ARR, CYS

    If the macroeconomic data keeps coming in better than expected, you can expect the Fed’s stimulus programs including the QE3 to cool down, reported Reuters. The US government and the Fed in particular have been busy providing the economy with stimulus by buying fixed income securities worth $85 billion a month.

    The objective of this massive bond buying was to push the long-term rates down and encourage cheap borrowing more »

  • 3 Undervalued Financial Stocks Yielding Over 9%

    By Adnan Khan - April 6, 2013 | Tickers: ARR, CMO, HTS

    In this article, I present to you three financial stocks that are undervalued and are yielding above 9% each. Since most of the financial stocks are valued at their book values, I have selected stocks that are trading below their book values. Since the stocks are undervalued, you can expect capital appreciation. Capital appreciation potential coupled with the high dividend yields present an excellent opportunity for enhancing your total returns more »

  • Exponential Growth at Agency mREITs Brings Them Under Regulatory Microscope

    By Adnan Khan - April 6, 2013 | Tickers: AGNC, NLY, ARR, CYS

    How Do REITs Make Money?

    Mortgage REITs invest in commercial/residential mortgage backed securities and earn a spread between their asset yields and the cost of funds. The mortgage backed securities in which mREITs are invested are their assets and they yield interest. They use short-term financing to purchase these assets and pay cost of funds on their borrowings. The primary objective of mortgage REITs is to provide its investors more »

  • Weakened Mortgage Market Activity Creating Benefits For mREITs

    By Adnan Khan - April 5, 2013 | Tickers: AGNC, NLY, ARR, NCT, PMT

    Compared to the fourth quarter of the prior year, mortgage activity has weakened during the first quarter of the current year. Overall, mortgage applications plunged 8% over the linked quarter and 3% over the prior year. This decline in the Market Composite Index is largely due to an 11% decline in the refinance application volumes, partially offset by a 10% improvement in the purchase volumes compared with the fourth quarter more »

  • 3 Undervalued Financial Stocks Yielding Over 9% Each

    By Adnan Khan - April 4, 2013 | Tickers: ARR, CMO, HTS

    In this article, I present to you three financial stocks that are undervalued and are yielding above 9% each. Since most of the financial stocks are valued at their book values, I have selected stocks that are trading below their book values. Since the stocks are undervalued you can expect capital appreciation. Capital appreciation potential coupled with the high dividend yields presents an excellent opportunity of enhancing you total return more »

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