Who Will Really Get Burned on mREITs?

In this video, Foolish financial analyst Matt Koppenhaffer gives a word of caution regarding mortgage REITs. To be sure, the double digit dividends paid by these firms is appealing.  However, many mortgage REITs invest in repurchase financing agreements that generate minimal returns. Even though these REITs are not heavily leveraged relative to banks, Matt believes many investors may be underestimating the risk/reward ratio these REITs possess.

Annaly Capital Management has a history of paying huge dividends to shareholders. But there are some crucial issues investors have to understand about Annaly's business model before buying the stock. In this brand-new premium research report on the company, our analyst runs through these absolute must-know topics, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.


Read/Post Comments (3) | Recommend This Article (9)

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  • Report this Comment On January 31, 2013, at 9:24 AM, StopPrintinMoney wrote:

    Should have done a better job on researching on NLY's hedge position against risks you discuss. Your POV is very biased and one-sided.

  • Report this Comment On February 01, 2013, at 8:25 AM, DavidAkre wrote:

    " invest in repurchase financing agreements", really? You obviously have zero clue about the topic.

    Now I know where this site came up with the name.

  • Report this Comment On February 01, 2013, at 3:16 PM, rcleven wrote:

    Have owned the stock for a while now. With div got my money back and sold half(free stock). Hate all you want.

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