Co-produced with Beyond Saving
It has been a historic year for mortgage REITs (mREITs). In March, we saw unprecedented volatility in the valuations of mortgages and mortgage derivatives like MBS (mortgage-backed securities). This volatility even reached into the world of agency MBS – mortgage securities which have their principal guaranteed by government-sponsored enterprises.
As a result of this volatility, we saw several mREITs receive margin calls. Some were forced to sell assets at poor prices, or even had their collateral seized and sold by the lenders. Others managed to keep their heads above water, but