- We discuss the current attractive profile of mortgage REIT preferreds, and in particular, agency-focused companies.
- The unusual nature of the mREIT business model means that investors are taking a view on the path-dependence of the agency market and the continued Fed backstop of the sector.
- It also means that the usual metrics preferreds analysis such as income coverage are not as useful.
- In our positioning we are tilting towards the fixed-coupon part of the suite. In particular, we like DX.PB and CMO.PE.
For further details see:
Agency mREIT Preferreds Update