Many mortgage REITs have seen large amounts of distress, according to Dominic Chu on CNBC. In this Video Spotlight, Chu discusses how two REITs, Invesco Mortgage Capital and New York Mortgage, have lost around 80% of their value in the last month, as their balancing on distressed levels.
Earlier this month, REIT prices have seen a dramatic decline, opening up a good investment opportunity, according to Seeking Alpha. REITs are not dead, as some may suggest.
“Book value per share should be down for every mortgage REIT so far in the quarter,” Seeking Alpha says. “The main difference will be the magnitude of the decline. This is where different analysts and investors may come to dramatically different numbers.”
As the role of non-bank lenders has shifted in the past few years, regulators are considered allowing further growth for these mortgage institutions and REIT, Wall Street Journal reports.