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Two Harbors Investment Corp.

  • Could now be a Good Time to buy mREITs?

    By Rupert Hargreaves - May 17, 2013 | Tickers: AGNC, NLY, TWO

    It has been well documented that the FED's newest asset purchase program has depress the yields on MBS, squeezing income for highly leveraged mREITs which rely on the interest spread between the interest they are paying on their borrowed money and interest received from MBS to generate income for shareholders.

    However, with rumours about the FED's tapering of asset purchases starting to circulate, could now be the time more »

  • Hybrid mREIT Diversifies Further

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

    Two Harbors (NYSE: TWO) is one of the hybrid REITs in the US that has large investments in both Agency and non-Agency residential mortgage backed securities. Other financial assets form about 5% - 10% of its entire portfolio. The following chart display the current proportion of each security within its portfolio at the end of the first quarter.

    The company recently announced it is further diversifying its business and entering new more »

  • Hybrid Mandate Gives This mREIT Better Upside

    By Adnan Khan - May 13, 2013 | Tickers: AGNC, MFA, TWO

    While Two Harbors (NYSE: TWO) missed its earnings estimate, it still appears to be best positioned to outmaneuver the current challenging macroeconomic environment, marked with accelerated Fed bond buying and the declining mortgage spreads. The remaining of the investment thesis will discuss Two Harbors' latest financial disclosures and see what competitive edge the company possesses.

    Portfolio diversification

    Two Harbors operates as a hybrid mortgage REIT in the US financial sector more »

  • These 3 Companies Are Diluting Shareholder Value

    By Rupert Hargreaves - May 8, 2013 | Tickers: DCIX, HCP, TWO

    As a value investor, one thing that always puts me off investing in a company is the dilution of shareholder value through constant issuance of new stock.

    Although it's sometimes done with the best intentions in mind, such as the re-payment of debt or increasing CAPEX spending, stock issuance can completely erode shareholder value on a per share basis. That said, it can also benefit shareholders over the longer more »

  • Tracking Cash Inflows: A Good Method to Locate Investment Opportunities

    By Jeff Stouffer - April 28, 2013 | Tickers: ALK, IWM, OCN, PCYC, TWO

    Exchange-traded funds have gained popularity for a variety of reasons. One feature that may assist the average investor in seeking investment opportunities is the daily transparency of the holdings. Observing the passive index following style empowers the investor to get a sense of what the exchange-traded fund will buy. These two elements may help uncover what stocks are being purchased by these funds.

    An investor may also choose to acquire more »

  • Double Digit Profits From Quantitative Easing

    By Ken McGaha - April 18, 2013 | Tickers: NLY, AI, NYMT, TWO

    Quantitative easing (QE) is a term with which many American adults may be familiar, but might not really understand what it is and how it can impact them. 

    What is QE and its effect?

    QE, as it's applied today, is the action being taken by the Federal Reserve Bank (the Fed) to buy large portions of new debt being issued by the Treasury Department to finance the government’s more »

  • Double Digit Profits From Quantitative Easing

    By Ken McGaha - April 14, 2013 | Tickers: NLY, AI, NYMT, TWO

    Quantitative easing (QE) is a term with which almost any American adult is probably quite familiar but may not really understand what it is and how it can impact them favorably or unfavorably. Effective investing is not about whether one agrees or disagrees with something that is taking place, it is about assessing the likely impact a certain action or situation will have and positioning capital in order to effectively more »

  • This mREIT Will Fly High on MSR Approval Despite Target Price Reduction

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

    Credit Suisse in a report to its investors lowered the price target for Two Harbors Investment (NYSE: TWO). This article will attempt to explore the reasons behind this decrease in the target price and also to see if it is a concern for you.

    Price Target Lowered

    Credit Suisse lowered the price target for Two Harbors from $14 to $13 to reflect the recent Silver Bay dividend. Excluding the Silver more »

  • Profit Off This Unique Dividend

    By Mike Thiessen - April 12, 2013 | Tickers: NLY, SBY, TWO

    Two Harbors Investment Corporation (NYSE: TWO) has raised some eyebrows in the investing world with the recent announcement that it would issue nearly 18 million shares of fellow REIT Silver Bay Realty Trust (NYSE: SBY) in a special dividend distribution to its shareholders. The development comes on the heels of a secondary offering of 50 million shares that dramatically reduced its share price.

    Market-watchers have been asking similar questions for 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 »

  • 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 »

  • Undervalued Financial Stock Yielding 14%

    By Adnan Khan - April 7, 2013 | Tickers: AI, MFA, TWO

    This reports aims to discuss Arlington Asset Investment (NYSE: AI) as an investment opportunity for investors who prefer regular income. You will also see a head to head comparison with its peers in the REIT space.

    Arlington Asset Investment has a market cap of just over $400 million and operates in the US as a mortgage REIT that invests in residential mortgage backed securities, both Agency and non-Agency. Around 82 more »

  • Undervalued Financial Stock Yielding 14%

    By Adnan Khan - April 4, 2013 | Tickers: AI, MFA, TWO

    Arlington Asset Investment

    Arlington Asset Investment (NYSE: AI) has a market cap of just over $400 million and operates in the US as a mortgage REIT that invests in residential mortgage backed securities both Agency and non-Agency. Around 82% of the company’s fourth quarter end investment portfolio is composed up of Agency securities, while the remainder is private label or non-Agency. Within the Agency portfolio, a large chunk consists more »

  • Prefer Hybrid mREITs on Dividend Hikes

    By Adnan Khan - April 2, 2013 | Tickers: IVR, MFA, TWO

    A hybrid mortgage REIT invests across the universe of residential mortgage related securities. Typically they invest in Agency and non-Agency mortgage backed securities backed by single-family or multi-family residential loans. Agency MBS have remained under pressure for quite some time due to the Fed’s interference. While the Fed’s actions were aimed at stimulating the US economy, they created a downward pressure on the Agency mREITs’ asset yields. However more »

  • 13 for '13: First-Quarter Results Are In!

    By Jeff Ross, MD - April 1, 2013 | Tickers: AAPL, SBY, BX, TWO

    If you joined with me and invested in some (or all) of my "13 for '13" recommendations at the start of the new year, you may be interested to see how we have faired so far in 2013.  The ride has been exciting ... because it's always more fun to ride investments up than to watch them crash down!

    In my opinion, the equities market really has nowhere to go more »

  • How to Play Single-Family Homes with REITs

    By Jordan Wathen - March 26, 2013 | Tickers: SBY, BX, TWO, UMH

    Have you heard the news?  Single-family homes are the new investment of the day. Big players like private-equity king Blackstone (NYSE: BX) are acquiring single family homes for rental income and appreciation. Blackstone is on a $100 million a week buying spree, having purchased $3.5 billion worth of American homes in just the past year.

    For investors, the opportunities in single-family homes are huge. Spreads between borrowing costs (currently more »

  • Are AGNC's Dividends in Danger?

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

    With the continued Fed’s quantitative easing, many expect American Capital Agency (NASDAQ: AGNC) and other mortgage REITs to report net interest rate compressions and dividends cuts at the end of the first quarter. However, evidence indicates otherwise for American Capital Agency. I believe the following three reasons will lead the company to post an expansion in its net interest rate spread during the first quarter of the current year more »

  • Buy mREITs on Mortgage Lender Shortage

    By Adnan Khan - March 20, 2013 | Tickers: AGNC, NLY, ARR, IVR, TWO

    Mortgage REITs have suffered enough at the hands of the Fed's easing. However, I believe the situation has overturned. This article reviews the latest poor housing data, reasons for the housing sector's underperformance and the consequences it will have on US mortgage REITs.

    Tumbling Housing Figures

    According to the latest weekly survey of the Mortgage Bankers Associations [MBA], the US housing statistics continue to deteriorate, despite the Fed more »

  • Buy This 9% Yielding mREIT

    By Adnan Khan - March 15, 2013 | Tickers: IVR, MFA, TWO

    MFA Financial (NYSE: MFA) reported its fourth quarter performance on March 6, 2013. This article will review the latest earnings by this 9% dividend yielder and compare it with its closest peers.

    Company Business

    Incorporated in 1997, MFA Financial started operations in 1998 as a hybrid mortgage REIT. The company is classified as hybrid mortgage REIT as it is invested in both Agency and non-Agency mortgage backed securities. As a more »

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