ORC - Quick And Dirty mREIT Discounts For 4/23/2019
One of the most important steps in evaluating mortgage REITs is finding the price to book value ratios. Using the mortgage REITs book value gives us an idea for the general range the mortgage REIT should trade in. We expect that all mortgage REITs holding similar assets will generally be correlated with each other.
If you see several mortgage REITs trading at 15% or greater discounts to book value, you should expect comparable mortgage REITs to also trade at material discounts to book value. If a few are trading at premiums, while others trade at