Many beieve that mREITs with portfolios of agency backed adjustable rate mortgages are preferable at the moment. The reason given for this preferece is based upon expected coming U.S. interest rate increases. Hatteras Financial Corp.(HTS) and Capstead Mortgage Corporation (NYSE: CMO). The benefit that Barron’s sees here is that these tend to be exposed to adjustable rate mortgages sponsored by the government-sponsored entities.
This has more to do with U.S. credit ratings f
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