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Buy REML And mREITs Because Of High Yields Or Discounts To Book Value

Published Mon, 24 Aug 2020 21:41:05 -0400 on Seeking Alpha

Seeking AlphaREITs | BahamasBuy REML And mREITs Because Of High Yields Or Discounts To Book ValueAug. 24, 2020 9:41 PM ET|| About: Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETN (REML), Includes: AGNC, BLK, CS, GLDI, MVRL, ORC, REM, UBS, USOIby: Lance BrofmanLance Brofman Debt, REITs, macro, ETF investingSummaryThe overall increase in securities prices has reduced the current yields on mREITs and the leveraged mREIT based ETNs, but yields are still very high.
Very low short-term interest rates make carry-type investing very attractive, particularly for those seeking.
There is a risk that no additional COVID-19 relief will be enacted, which could severely damage the economy.
The damage to the agency mREITs resulting from the sudden.
Many mREITs are still trading at discounts to book value. That has been a good buying point historically.
Buy mREITs Because of High Yields or Discounts to Book Value
REITs, in general, and mREITs, in particular, have traditionally been bought for current yield. Very low short-term interest rates make carry-type investments, such as mREITs, now very attractive, particularly for those seeking to maximize current income. Furthermore, while mREITs might be reducing their dividends because of the March 2020 basis-related or other losses, they will not have their dividends reduced or eliminated as a consequence of accepting COVID-19 related aid from the federal government. This could become an important factor for investors seeking current income. There is no investment instrument, that does not entail significant credit risk, now offering the high current yields of the agency mREITs.
Historically, whenever mREITs are trading at significant discounts to book value, they have been a good buy. Even after the sharp increases from the March 2020 bottoms, many mREITs are still trading at discounts to book value. However, some non-agency mREITs are trading at dramatic discounts to book value, but do not have high... 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
AMERICAN CAPITAL AGENCY 15.64   0.0 -1.54 1.92 12.21
UBS 11.53   9.8 1.18 0.00 5.93
BLACKROCK 434.75   16.5 26.34 13.20 3.08
CREDIT SUISSE GROUP 12.98   14.1 0.92 0.26 1.99
ISHARES FTSE NAREIT MORTG PLUS CAPPED INDEX FUND 41.97   0.0 0.00 0.00 0.00

ORCHID ISLAND CAPITAL - ORC
ORCHID ISLAND CAPITAL - ORC  


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