MREITS - High Yield Or High Risk? What You Always Wanted To Know But Were Afraid To Ask!
... the environment that has been so favorable for MREITs will continue to nurture them. For those who have the time, ability and desire to do the required due diligence, these investment vehicles offer an unusual opportunity, at the present, to generate yields that are unachievable in other areas of the high yield universe such as MLPs, BDCs, Telecoms, and utilities. In this case, however, nowhere has the saying caveat emptor (buyer beware), been more appropriate. Copyright 2011 Boyd Investment Holdings LLC. All rights reserved worldwide. ... considered practically non-existent. As a result of lower risk the yield is lower than is found on MREITS investing in riskier Non-Agency backed mortgages. This second group, the Non-Agency MREITs, such as Chimera Investment Corp., have portfolios consisting totally of mortgages and MBS that are not Agency backed or issued. Finally there are the hybrid MREITs, such as Invesco Mortgage Capital, which, as you might guess, are made up of a combination of Agency and Non-Agency mortgage assets. Frequently Agency MREITs increase their return by utilizing high leverage, so where they have a lower risk of default, they ...
Tags: mreit | mortgage real estate investment trust | mreits and interest rates | high yield mreits | high yield |
Tags: mreit | mortgage real estate investment trust | mreits and interest rates | high yield mreits | high yield |