TRMT - Tremont Mortgage: An mREIT Trading 40% Below NAV That Is About To Have A 14.5% Dividend Yield

Mortgage REITs are an interesting opportunity today. They pay very high yields often above 8-10% but have been struggling with generally low spreads and a flat yield curve. As demand for mortgages return to normal and the yield curve continues to re-steepen, I believe that mREITs will be a lucrative opportunity.

The other day I provided a quantitative rank of mortgage REITs in "Ranking The Mortgage REITs From Most Undervalued To Overvalued". There was one very small mREIT that was at the top of my list and stood at like a sore thumb

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