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Why Aren’t These mREITs Buying Back Shares?

Mortgage REITs, like Annaly Capital Management  (NYSE: NLY  ) and American Capital Agency (NASDAQ: AGNC  ) , are trading at deep discounts to their book values, so why aren't these companies buying back more of their own stock?  

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson look at two Tweets about the mREIT sector and why buying back shares may not be a complete no-brainer.

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Comments from our Foolish Readers

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  • Report this Comment On January 17, 2014, at 10:59 AM, foolishfollies wrote:

    Well it always helps when an activist investor is pushing for it as is the case with say a JMI

  • Report this Comment On January 17, 2014, at 1:51 PM, woo131 wrote:

    I know that ATSG has been buying back shares at a discount, although I don't know about NLY. Why don't you know this?

    Buying back shares is good for the stockholders, not so good for the management.

  • Report this Comment On January 27, 2014, at 9:21 PM, TMFAleph1 wrote:

    "Buying back shares is good for the stockholders, not so good for the management."

    In fact, in many, if not most cases, the opposite is true: Buybacks are nearly always beneficial to management, but often detrimental to shareholders.

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David Hanson

David has been with The Motley Fool since 2013. He is a graduate of the University of Miami. Follow David on Twitter for all things finance, marketing, and investing.

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Related Tickers

8/28/2015 4:00 PM
AGNC $19.36 Down -0.19 -0.97%
American Capital A… CAPS Rating: ****
JMI $6.56 Down -0.02 -0.30%
Javelin Mortgage I… CAPS Rating: No stars
NLY $10.17 Down -0.04 -0.39%
Annaly Capital Man… CAPS Rating: ****