The mortgage REIT sector has taken a beating this summer. Changes in interest rates, driven by talk from the Federal Reserve, has sent stock prices plummeting for the big names like American Capital Agency (NASDAQ:AGNC) and CYS Investments (NYSE:CYS), as well as for smaller players like Invesco Mortgage Capital (NYSE:IVR).
In the video below, Motley Fool contributor Jay Jenkins takes a step back to better understand what's happening in this sector, and specifically, how a company like Invesco Mortgage makes money.
Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.