🧵 1. Agency REITs correlate with yield curve shape. Understanding impact on stock indexes, sectors, factors is crucial in this bullish steepening trend. #finance
🧵 1. Agency REITs correlate with yield curve shape. Understanding impact on stock indexes, sectors, factors is crucial in this bullish steepening trend. #finance
🧵 2. REITs own, manage, or hold income-producing properties. Unique legal structure requires analysis of changing economic, market, policy conditions.
🧵 3. Agency REITs specialize in owning mortgages on residential real estate secured by government agencies, minimizing credit risk in Mortgage-Backed Securities (MBS).
🧵 4. Agency REITs' earnings stem from asset-liability spread, hedging costs, leverage. Hypothetically, a new agency REIT may yield high returns using leverage.
🧵 5. Managing agency REITs involves complexities due to unique nature of MBS bonds and factors influencing mortgage market dynamics.
🧵 Read more at: https://www.zerohedge.com/markets/agency-reits-bull-steepener