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CreXus Investment

  • Will Diversification Help This Mortgage REIT?

    By Madhu Dube - May 21, 2013 | Tickers: NLY, CXS, CYS

    The mortgage REIT industry is a favorable sector for income seeking investors, because of its high dividend yields. However, with the Federal Reserve’s continuous intervention into the market in recent times, there are concerns whether these companies will continue to provide higher dividend yields or not. Let's discuss the biggest player in this industry, Annaly Capital Management (NYSE: NLY), which recently posted first-quarter results. Let’s look at more »

  • Could Annaly Capital’s Recent Acquisition Lead to a Dividend Increase?

    By Adnan Khan - April 23, 2013 | Tickers: AGNC, NLY, CXS

    Annaly Capital Management (NYSE: NLY) was hit hard by the government’s easing programs, particularly the third round of quantitative easing, better known as QE3. As a result, the company was forced to cut its dividends twice during the last year. While the company might still be recovering from this, it has made the acquisition of Crexus Investments (NYSE: CXS) to outmaneuver the government’s easing programs. This investment thesis more »

  • Analyzing the Top REITs

    By Piyush Arora - April 11, 2013 | Tickers: AGNC, NLY, CXS, TWO

    The Federal Reserve has been injecting $85 billion of liquidity every month and will continue to do so, until the unemployment rate falls below 6.5% and inflation is under control. To revive industrial growth and consumer spending, it has kept its long-term interest rates near to zero. This cheaply available credit in the economy has caused a spike in prepayments and narrowed interest rate spreads, which is contracting the more »

  • Analysing Top REITs in Business

    By Piyush Arora - April 7, 2013 | Tickers: AGNC, NLY, CXS, TWO

    The Federal Reserve Bank has been injecting $85 billion of liquidity every month, and will continue to do so until the unemployment rate falls below 6.5% with inflation under control. And to revive industrial growth and consumer spending, it has kept its long term interest rates near to zero. This cheaply available credit in the economy has caused a spike in prepayments and narrowed the interest rate spreads, which more »

  • Welcome Signs for Annaly Capital

    By Adnan Khan - March 25, 2013 | Tickers: AGNC, NLY, ARR, CXS

    Annaly Capital Management (NYSE: NLY) stands to be the largest US mortgage REIT that invests in mortgage backed securities for which any of the government Agencies guarantee the principal and interest payments. It has a market cap of over $15.2 million and is trading above its fourth quarter book value for the first time in a long time. The remainder of the investment thesis aims to discuss the reasons more »

  • REITs Are a Good Idea for at Least Two Years

    By Nihar Patel - March 23, 2013 | Tickers: AGNC, NLY, CXS

    There is a lot of justified fear concerning REITs. Mortgage REITs make money by using the spread between short-term debt and long-term debt. The fear for REITs stems from concerns of a change in the interest rate and continued easing pushing the interest rate spreads even lower. The Fed has been buying up mortgage-backed securities, increasing their price and lowering yields. That makes it hard for mortgage REITs to make more »

  • Annaly Is Still The Best Pick In REITs

    By Maxwell Fisher - March 14, 2013 | Tickers: NLY, CXS, RWT, STWD

    Annaly Capital Management (NYSE: NLY), a company that has long been dubbed an attractive investment, reported its results for the fourth quarter of 2012. In this article, I will examine the company's fourth quarter financials to determine whether or not the stock continues to be an attractive investment.

    Financials

    Annaly reported GAAP net income for the fourth quarter of 2012 of $700.5 million, or $0.70 per average more »

  • Disecting This mREIT

    By Adnan Khan - February 21, 2013 | Tickers: NLY, CXS

    Since 2008, CreXus Investment (NYSE: CXS) has operated as a mortgage REIT with investments in commercial mortgage loans, commercial mortgage backed securities, commercial real property, Agency Residential mortgage backed securities, commercial real estate debt and other commercial real estate related assets. Since the company is operating as a mortgage REIT, its objective is to provide its shareholders with high risk-adjusted returns, primarily through dividends.

    Investment Portfolio

    For the purpose of more »

  • Is Annaly Ready to Claw Back Its Worst Performance?

    By Adnan Khan - February 20, 2013 | Tickers: AGNC, MTGE, NLY, ARR, CXS

    Annaly Capital Management (NYSE: NLY), which largely invests in government-backed residential mortgage securities and oversees about $133 billion of assets, shares lost 17%in the fourth quarter, leading the decline of a Bloomberg index of 32 REITs.  As Fed efforts to stimulate the economy narrowed bond spreads, making it easier for more home borrowers to prepay mortgages, investors became concerned that REITs would need to cut dividends.

    However, the situation more »

  • Can This mREIT Out Maneuver The Fed?

    By Waqar Saif - February 1, 2013 | Tickers: AGNC, NLY, ARR, CXS

    In its bid to out-maneuver the Fed’s policy of keeping the rates low, Annaly Capital Management (NYSE: NLY) disclosed its interest in purchasing the remaining stocks of CreXus Investments (NYSE: CXS). CreXus Investments specializes in the acquisition and management of commercial mortgage backed securities. Annaly Capital currently holds around 12.4% of CreXus and the full acquisition would provide risk-adjusted returns to shareholders, while at the same time act more »

  • mREITs: Bears Don’t Get It

    By Adnan Khan - January 31, 2013 | Tickers: AGNC, NLY, ARR, CXS

    Mortgage Market Update

    Mortgage rates in the US have been climbing since the beginning of the year. This is despite record easing from the Fed to keep long term rates down. The average 30-year mortgage rate edged up 3.53%, it’s the highest since September, while the average 15-year rate increased 10 basis points to 2.81%. Mortgage rates are on the rise as housing inventories are shirking driving more »

  • All Is Well For Annaly Capital

    By Mohsin Saeed - January 31, 2013 | Tickers: NLY, CXS

    Annaly Capital (NYSE: NLY) finally announces agreement to acquire CreXus Investments (NYSE: CXS) amid increasing long-term mortgage rates. Under the agreement, Annaly agreed to hike the November bid price of $12.5 for each share of CreXus to $13 a share. This way Annaly would pay $872 million for the remaining shares of the commercial mortgage REIT. I believe this diversification is a strategic step in the right direction under more »

  • This mREIT Gets Even Better

    By Adnan Khan - January 28, 2013 | Tickers: AGNC, NLY, ARR, CXS, PMT, STWD

    Starwood Property Trust (NYSE: STWD) operates as one of the largest commercial mortgage REITs, both buying existing commercial mortgages and originating its own commercial loans. It’s been over three years since the company commenced operations, and since then Starwood has carved out a dominant position in the REITs sector for itself, providing attractive dividend yields and potential for growth. The $3.4 billion market cap company was initially built more »

  • Which 6 mREITs Can You Profit From?

    By Bill Edson - December 5, 2012 | Tickers: NLY, CIM, CXS, TWO

    Annaly Capital Management (NYSE: NLY), a pioneer mortgage REIT, is looking to diversify its business by offering $840 million for the remaining 88% of CreXus Investment (NYSE: CXS). This bid is being made after the Federal Reserve declared relentless bond buying. The latest round of quantitative easing initiated by Fed, dubbed "QE Infinity," aims to mop up $40 billion of agency mortgage backed securities (MBS) every month and in doing more »

  • REIT Investing in Focus: Armour Residential

    By Maxwell Fisher - November 29, 2012 | Tickers: AGNC, NLY, ARR, CXS

    Investors looking for income investments with a reasonable return have had to expand their investment choices well beyond traditional investments to generate the income they desire. Given the low interest rate environment and the meager returns on conventional fixed income securities, it has become difficult to find satisfactory investment alternatives. There has been an increasing reliance on REITs because of the high dividend yields that are available. Mortgage REITs pay more »

  • Annaly’s Strategy Expansion

    By Douglas Ehrman - November 14, 2012 | Tickers: AGNC, NLY, CXS | Editor's Choice

    There are typically two appropriate responses when a company makes a major shift in its central strategy, particularly when that company is in the business of managing money. The first is to recognize it as a necessary part of a changing environment and praise management for its ability to dynamically adapt to new conditions. The second is to see it as a serious warning sign and quietly find the exit more »

  • Crexus: A REIT for More Aggressive Investors

    By Maxwell Fisher - May 2, 2012 | Tickers: NLY, CXS, TCO

    Annaly (NYSE: NLY), a manager of Agency guaranteed residential real estate assets, has been delivering strong dividends to investors through a very rough domestic economic cycle. Crexus (NYSE: CXS) distributes its earnings from assets backed by commercial loans. REITS, such as these, are an interesting investment alternative since income and dividend investors are a mainstay of any market cycle. It is wise for any investor, even those with a high more »