PMT - Better Buy: Annaly Capital or PennyMac Mortgage Trust?
2023-06-25 05:15:00 ET
The past 15 months have been particularly difficult for companies operating in the mortgage market. The Federal Reserve's rapid-fire interest rate increases depressed the value of mortgage-backed securities. Rising rates also negatively affected anyone in the business of originating mortgage loans, as the incentive to refinance for a lower rate disappeared.
Now that the Federal Reserve is getting close to wrapping up its tightening cycle, the mortgage real estate investment trusts (REITs) are getting a second look from investors attracted to their above-market dividend yields. Two popular mortgage REITs are Annaly Capital (NYSE: NLY) and PennyMac Mortgage Trust (NYSE: PMT) . Which one is the better buy?
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Better Buy: Annaly Capital or PennyMac Mortgage Trust?