Co-produced with Beyond Saving
At High Dividend Opportunities, we are very bullish on agency mortgage REITs (or mREITs). Those mREITs which invest primarily in agency mortgage-backed securities or agency MBS – mortgage securities which have their principal guaranteed by government-sponsored enterprises (agencies such as Fannie Mae and Freddie Mac). These mREITs took a beating in March, as the agency MBS market had unprecedented volatility, combined with a treasury rates crashing. Since agency mREITs buy agency MBS and short US Treasuries, the combination created exceptionally adverse conditions. For these mREITs, it was a matter of protecting