Introduction
For most of the financial industry, but especially the mortgage REIT sector, the end of the first quarter was an absolute nightmare. Credit markets began to freeze up, and even though the Federal Reserve had lowered the Fed funds rate, everywhere else rates began to spike.
Even though the Treasuries market is supposed to be the most liquid market in the world, problems began to arise. Reuters used the phrase, "The plumbing behind world's financial markets is creaking." Within days, headlines claimed the U.S. was headed towards another financial crisis. Across the