Following a recent piece for subscribers, our Mortgage REIT Sector Update, we opened positions in Annaly Capital Management (NLY) and Two Harbors (TWO). Each of these mortgage REITs has recently declined by materially more than many of their peers. That in itself wouldn’t be enough to interest us, but the fundamentals for these two REITs aren’t suffering worse than their peers.
To be clear, when the price dips further but the fundamentals are not damaged, that means shares became cheaper relative to peers. Finding opportunities in mortgage REITs is mostly