High unemployment has driven interest rates to record lows, boosting the profit spreads for mortgage REITs. Particularly for REITs, there's a flip side to unemployment. The Fed has been working to reduce borrowing costs and speed up the recovery through a series of efforts – most recently, "QE 3." An example of companies targeting these efforts would be Annaly Capital (NLY 1.33%), Chimera (CIM 2.24%) and Invesco (IVR 1.98%), just to name a few.
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