PennyMac Mortgage Investment Trust
In light of the sell-off in Mortgage Real Estate Investment Trusts (mREIT) over the past month, now might be a good time to take a look at three ideas within the sector. In this post, I will take a look at total returns, dividend yields, and current trading valuations of three mREITs.
For those who are not acquainted with the Real Estate Investment Trust industry, unlike Hybrid mREITs, Agency mREITs more »
The most popular small cap stocks (defined as those with market capitalization between $1 billion and $5 billion) among hedge funds outperform the S&P 500 by 18 percentage points per year on average. We think that this is because small cap stocks receive less attention from the financial media and institutional investors such as mutual funds.
Hedge funds are, therefore, more likely to uncover an undervalued or overvalued stock more »
A few weeks ago I wrote an article, Two REITs for Your IRA.
That article explains how REITs work and why you should consider investing in REITs.
Since penning that article, I have done a lot of research on REITs. And after starting with well over 100 REITs, I narrowed that list down to ten.
Then I selected four of those to use in this article.
Those four REITs are more »
A month into 2013, it is becoming apparent that the housing recovery is real and likely to continue. According to a recent Forbes article, the Case Shiller home price index shows prices are up over last year, growing at the fastest pace year over year since mid-2006. Home prices rose 4.5% for the 10-City Composite and 5.5% for the 20-City Composite in the 12 months ending in November more »
QE4 is here to replace Operation Twist and Ben Bernanke has promised an extended easing at a rate of $85 billion a month. The easing is here to stay until the US unemployment rate, which is currently at 7.7%, falls below 6.5%. The new buying program will be purely of Treasury purchases, unlike QE3.
It is widely anticipated that the new easing will add more accommodation to the more »
To stimulate growth in the sluggish US economy, the Fed announced the launch of QE3. QE3 was aimed at particularly supporting the US housing and labor markets. However, the US labor market is still not close to the kind of improvement imagined by the Fed. I believe QE3 will stay even if the financial cliff is averted. Given the situation, I recommend investors stay away from pure play Agency Mortgage more »
The third round of quantitative easing through which the Federal Reserve will purchase agency mortgage-backed securities, although considered a stimulus for the slowing economy, will have a negative impact on certain Real Estate Investment Trusts (REITs). REITs that invest exclusively in agency mortgage- backed securities (MBS) will be the ones that take the worst hit.
However, before we proceed, we should know a little more about REITs.
REITs make direct more »
Stocks with low PEs and good dividend yields are often the best bet for long term value investors. In addition, when these stocks starts picking up momentum they also become well suited for investors with short term investment horizons. The following is a list of three high yield stocks which have seen significant upside in the last 3 months.
Forward Dividend Yield
3 month Returns
Calumet Specialty Products more »
Ben Bernanke recently cheered the market when it was announced that the interest rates in the US would be kept low. The businesses that cheered the most were market liquidity dependent. By keeping the low interest rate environment, the liquidity in the market would allow businesses like mREITs to prosper, and hopefully bring the industry back to its full health.
Mortgage REITs buy mortgages from the market, package them and more »
When Federal Reserve Chairman Ben Bernanke strides to the podium at Jackson Hole in late August to speak, the entire mortgage investment industry should rise up and cheer.
The stock holders for companies in this sector such Ellington Financial LLC, Invesco Mortgage Capital (NYSE: IVR), Anworth Mortgage Asset (NYSE: ANH), PennyMac Mortgage Investment (NYSE: PMT), and CYS Investments (NYSE: CYS) should all join in the standing ovation. Due to Bernanke more »
Chimera (NYSE: CIM) may just be the best bargain in the mortgage real estate investment trust (mREIT) sector. It may also be the biggest risk, because its dividends and share price are modest when compared to more traditional mREITs.
As the famous proverb goes, “when the going gets tough, the tough get going”, applies to the current market situation very aptly. The markets are choppy most of the time, mainly because of the EURO, and there is no clear indication as to when this rough patch is going to end. One can pick up a value stock or a growth stock, and make big bucks out of them, but more »