XAN - Granite Point Mortgage Trust: Expect A Bounce On Tough But Not Devastating Quarter
Industry Background and Peers
Granite Point Mortgage Trust (GPMT) is a commercial mortgage real estate investment trust (cmREIT). It uses funds to buy assets, such as commercial mortgage-backed securities ((CMBS)), commercial real estate ((CRE)) loans, and repo agreements. To buy these assets, cmREITs are made up of some equity from shareholders and the rest is done with debt, so they are leveraged up (usually 2x-5x). The sector has had a very rough time in the last couple months, and rightfully so. The underlying value of these commercial real estate assets has had quite