The mortgage REIT market was disrupted in an enormous way earlier this year. Pricing for securities went haywire as liquidity dried up amidst a huge panic among investors related to COVID-19 globally. Mortgage REITs, which employ leverage to invest in these securities, were particularly hard hit by market weakness as a result. Some have recovered better than others, and while I'm bullish on some mortgage REITs, not all are created equal.
One such mREIT that I'm not bullish on is Western Asset Mortgage Capital Corp. (WMC). The trust sustained enormous book