In just a few short weeks, the Federal Reserve will adjourn from another meeting of its Federal Open Market Committee. Over the next minutes, days, weeks, and months, the markets will digest the Fed's actions, words, and policies. Some opportunities will fall by the wayside, while others will come to the forefront.
For the big names in the mREIT sector -- American Capital Agency (NASDAQ:AGNC), Annaly Capital Management (NYSE:NLY), Hatteras Financial (UNKNOWN:HTSI.DL), Invesco Mortgage Capital (NYSE:IVR), and others -- the coming actions from the Federal Reserve could be an opportunity to regain the losses incurred over the past few months.
In the video below, Motley Fool contributor Jay Jenkins explains a circumstance where, driven by the strong recovery in real estate, mortgage REITs could earn big profits from a carry trade delivered by the Fed on a silver platter.