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 (NYSE:NLY), Chimera (NYSE:CIM) and Invesco (NYSE:IVR), just to name a few.
Austin Smith has no positions in the stocks mentioned above. Ilan Moscovitz has no positions in the stocks mentioned above. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.