The fall of securitized mortgages caused a major financial crisis just a few years ago. After their ballistic rise, fueled by the low rate environment that followed the bursting of the Internet bubble and lax mortgage practices by a historically strict group, their consequential collapse brought down almost everything else.
some of these REITs achieve their lofty yield through the implementation of significant leverage. This leverage makes them more sensitive to changes in the market, positive or negative, especially where not hedged. In closing, should you be interested in investing broadly in this sector, iShares has created an Exchange Traded Fund that tracks the performance of the index of residential and commercial mortgage real estate, mortgage finance and savings associations sectors.
Source: Seeking Alpha
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Mortgage REITs That Currently Yield Above 10%
Posted by D4L | Friday, April 29, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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