I’ll be putting up a “thought” piece on the anomaly of the mREITs trading down at the same time the Fed is signaling it might be years before they start tightening the screws on short term rates.
One of the reasons cited is the absurd idea that there might a widespread individual debt amnesty on mortgages. Huh? That only works if you’ve borrowed more than $10 billion.
Having said that, it’s also absurd that 4.5% MBS trade at premium prices that people were afraid to pay for 9% MBS most of my life.
I did get hit on a bid for some NLY today, and nearly scalped a few hundred dollars when it partially recovered. I think I should stick with my understanding of its current trading range, and wait on the profit taking until it trades back in the $18 a share region, however.