- The endgame for the Covid-19 pandemic is now in sight, due to the very successful vaccine trials.
- Securities that suffered severe losses due to the pandemic could now be considered the “non-medical vaccine plays”.
- The markets may be underestimating the extent that pandemic losses may have reduced the value of some of the “non-medical vaccine plays”.
- Book value may not be a good metric to measure the permanent damage done to some securities, by the pandemic. Thus, their valuation is problematic.
- Agency mREITs are one sector where book value is the major determinant of value. The pandemic damage to the agency mREITs is finite and is now known.
For further details see:
REML: A Better Non-Medical Vaccine Play