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Modern Monetary Theory And 20+% Dividend Yields On REML, MORL And MRRL

Published Mon, 29 Apr 2019 04:01:41 -0400 on Seeking Alpha

Modern Monetary Theory and 2X-leveraged mREIT-based ETNs Modern Monetary Theory is a topic currently being bandied about by some at both ends of the political spectrum. Stephanie Kelton, who advised Bernie Sanders' 2016 presidential campaign and was chief economist for the Democrats on the U.S. Senate Budget Committee, is a prominent proponent of Modern Monetary Theory. Her most well-known quote is: "Federal deficits are private sector surpluses". Celebrity member of Congress, Alexandria Ocasio-Cortez (D-NY), and others advocating vast increases in Federal government spending in health and education, make favorable mention of Modern Monetary Theory. Ocasio-Cortez has said that Modern Monetary Theory absolutely needed to be "a larger part of our conversation."
After President Trump asserted that he could renegotiate down the Treasury debt owned by foreigners, his aides informed him that the United States effectively can print its own money. Trump seemed pleasantly surprised by that fact, and since then he has apparently abandoned his campaign promises about balancing the budget and eliminating the national debt during his first term. The Modern Monetary Theory version of the fact that sovereign governments can print their own money, is that "the national government is the monopoly supplier of currency".
The implications of any sort of adoption by policymakers of Modern Monetary Theory for 2x Leveraged High-Yield ETNs and especially for those based on an index of mREITs could be... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ORCHID ISLAND CAPITAL 5.58   0.0 -0.29 0.96 17.75
NEW RESIDENTIAL INVESTMENT 14.98   18.0 0.83 2.00 13.28
AMERICAN CAPITAL AGENCY 15.64   0.0 -1.54 1.92 12.21
DYNEX CAPITAL 15.16   0.0 -10.26 1.80 12.06
ARMOUR RESIDENTIAL REIT 17.26   0.0 -9.30 2.04 12.03
PENNYMAC MORTGAGE INV TRUST 22.24   9.5 2.35 1.88 8.50
HANNON ARMSTRONG 27.95   32.5 0.86 1.34 4.96