This research report was produced by The REIT Forum with assistance from Big Dog Investments.
A flattening yield curve is a major threat to residential mortgage REITs. The Federal Reserve has been hiking rates and driving the yield curve to a much flatter level. We'll highlight one that stands out as being overvalued. Commercial mortgage REITs aren't exposed to the same problem. Instead, commercial mortgage REITs benefit from higher interest rates.
Let’s run through the list and then we’ll get deeper into the analysis:
The mREITs (and two ETFs)
The table is demonstrated below: