BMR Updates Outlook on Mortgage REITs

PRINCETON, N.J., Nov. 3, 2010 /PRNewswire/ -- The Bull Market Report (BMR) (http://www.bullmarket.com), an online investment newsletter focused on long-term growth and income-generating stocks, has provided subscribers with updated coverage of several mortgage REITs, including Annaly Capital Management (NYSE: NLY), American Capital Agency (Nasdaq: AGNC), Capstead Mortgage (NYSE: CMO), Hatteras Financial (NYSE: HTS), and Anworth Mortgage (NYSE: ANH).

In addition to its daily newsletter and Recommended List of stocks, BMR publishes six earnings previews each quarter and several special reports each year. Its annual "High Yield" special report comes out before the new year, while its MLP special report comes out mid-year.

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In its daily report, BMR wrote: "When it comes to agency-backed mortgage REITs, falling rates generally boost the value of their portfolios, or their book value, which is how the stocks are typically valued – at a multiple of book value.

"Remember, mortgage REITs basically make their money by buying mortgages and then leveraging these investments by borrowing repurchase agreements against them. The difference between the short-term rate they are paying and the interest they collect from the mortgages is the interest rate spread. The larger the spread, the more money they tend to make. In addition, the more leverage they use, the more money they can earn.

"Why mortgage REITs (ones that invest in agency-backed securities) are hurt by rate hikes is similar to why a long-duration bond mutual would fall in price if rates rise. Bond prices and yields have an inverse relationship. When current yields rise, prices fall."

BMR looked at the following topics, among others:

-- After mixed Q3 results, which mortgage REITs are BMR's favorites and why?

-- What problems did Annaly run into in Q3; will they continue?

-- Is there still time for investors to profit from mortgage REITs?

-- What characteristics should investors look for in mortgage REITs at this point in the rate cycle?

About BMR:

Launched in 1997, The Bull Market Report has a strong track record of creating wealth for its subscribers by providing sound, long-term investing advice. BMR's Recommended List includes about 50 companies across all major industries, including Financials, Healthcare, Energy, Technology, and Retail, among others. BMR is one of the oldest continuously published investment newsletters online, and its Recommended List has consistently outperformed the major market indices.

NOTE: This release was published by Indie Research Advisors, LLC, a registered investment advisor with CRD #131926. Interested parties may visit adviserinfo.sec.gov for additional information. Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE Indie Research Advisors, LLC

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