Two Harbors Investment is a mortgage REIT that invests in agency residential mortgage-backed securities. The principal and interest payments from the underlying mortgages of such securities are guaranteed by government-sponsored enterprise Fannie Mae, Freddie Mac, or Ginnie Mae (though Ginnie Mae is not a GSE).
Two Harbors Investment currently trades at a 9% discount from its accounting book value, which is lower than the 12% discount for American Capital Agency Corporation (AGNC 1.60%), and the 14% discount from Annaly Capital Management (NLY 2.13%).
It was a difficult 2013 for mortgage REITs, as the sector experienced a great deal of trouble because of the Federal Reserve's uncertain monetary policy.
Leverage is a big thing for mortgage REITs and naturally an area of interest for investors.