Capital continues to rush to the mortgage REIT sector as ZAIS Financial (ZFC 2.48%) just completed its initial public offering last week and Cerberus Mortgage Capital just filed for an IPO. ZAIS has been active since mid-2011, but Cerberus Mortgage doesn't plan to start operations until it completes its IPO. What does this rush of capital to the sector mean for investors? Well, for one thing, it suggests that conditions are particularly favorable right now or else companies wouldn't be rushing to go public. That should be a bit worrisome for investors in established mREITs such as Annaly (NLY 0.28%) and American Capital Agency (AGNC 0.49%) because it likewise suggests that the profitability and good times they've seen in recent years may not last.
The Mortgage REIT Gold Rush
By Matt Koppenheffer – Feb 11, 2013 at 5:07PM
NYSE: NLY
Annaly Capital Management
Market Cap
$14B
Today's Change
(-0.28%) $0.06
Current Price
$21.05
Price as of October 21, 2025 at 4:00 PM ET
Why are all these mortgage REITs rushing to go public?
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.