| | I discussed mREIT Math in an earlier article on the mREITs. ROEs for agency mREITs are much improved and probably higher by 150 200 bp. than a few weeks ago. Book values are lower, but when you multiply the higher ROEs by the lower book values, you still get dividend yield capacity close to the current level, perhaps a bit above. The important thing is that while the price and book value declines are painful, this pain is DIFFERENT than in the past. The fundamentals for the mREITs are actually improving which was NOT the case in the previous mREIT bear cycles. or global economic data (China, Japan) showing slowing growth. Realization that the SEC and FSOC regulatory attacks on mREITs are either non existent or will result in giving them very wide latitude in running their business models. Dividend announcements for the sector begin in mid June. Earnings data in July may indicate that the mREITs took the Q1 rate spike seriously and hedged their portfolios for rising rates. Current dividend yields are higher as prices have fallen: agency mREITs average dividend yield is up to 12.5% from 11% in mid April. Hybrid mREITs average yield is 12.7%, up from just under 11% in mid March. Realization by mREIT investors that this time it IS different and that rising long yields (as long as the entire 'risk off' move is not repealed) are different than rising short yields and will eventually help dividend payment capacity for the sector. There is nothing worse than seeing the markets up over 1% like yesterday and seeing virtually every equity and bond position in the red because of the spike in yields (trust me, 33 out of 34 positions I had were red). But mREITs are essentially leveraged bond funds and bonds will eventually find a floor consistent with value. If you think rates are heading straight to 2.50% or even 3.00% or higher then by all means trim positions. But if you have plenty of cash or are underweight the sector, you can definitely nibble at the best of breed names at current levels. Use wide scales to purchase additional shares maybe add another 2 3% in mREITs for every 5% drop in price so you do not exhaust your cash levels too quickly., , Apple store employees made a line just inside the front door and clapped for customers entering and leaving the store., , Startups: How does equity work? If I have 9,000 shares in a company with a 4 year vesting period with a 12 month cliff? What does that mean for me during an acquisition?, , , Entries can be submitted until Sunday, November 25, at noon ET., , , What if the barriers to entry into the stock market were lower? What if young people could easily invest small amounts of money into any stock they desired. What kinds of companies would they invest in? For what reasons would they invest in them? It is my belief that this demographic would be more ideological in nature, less concerned about a company bottom line and financials and more focused on its social operations and global impact. I would hypothesize that the renewable energy sector, for example, would see much more attention if this group could invest easily., , , Because I really do think AquaFina tastes better than Dasani, and that square Fiji bottle won't fit in my car's cupholders. And I like to take fliers on things, like Ramlsa, because I suffer from the delusion that there's a better water out there., Coach Bags Outlet Online Store, Coach Crossbody Bags, 28416_Coach New Gunny Belt Decoration Bag Marron U07009, , , A: Yes, , , The challenge for agents and consumers is how to negotiate through this complicated maze. If there is secondary financing on the property, one strategy is to approach the second mortgage holder first to see what its requirements are in terms of payoff.
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