Generous distance. Make their money on mortgages, which is too risky for me. In addition, the dividend has been decreasing for almost 8 years, so currently sounds cooler than it is. If it absolutely has to be a monthly payer, then rather Stag or Realty, do not let yourself be blinded by the supposedly high dividend.
•
88
•
How would you assess the risk in the medium term (3-5 years). I actually see potential there. But I am also unsure whether I have understood the mortgage business...
•
11
•How would you assess the risk in the medium term (3-5 years). I actually see potential there. But I am also unsure whether I have understood the mortgage business...
••
@NickHrtl Well, I think AGNC is a classic mREIT, the idea being that the companies behind it borrow money to buy mortgages. Works in principle as long as interest rates remain constant or fall. If interest rates rise, however, the margin of mREITs can quickly fall. I can't tell you exactly how high the risk is, but as I said, the topic of tREITs is too hot for me, especially in the current interest rate environment.
•
22
•
@RoronoaZoro However, they are secured mortgages, so total loss is rather unlikely. But in general I agree, I would not buy AGNC again.
••
10Mon
Considering that interest rates have peaked and expectations are that they will decrease, it seems to me a good moment to re-enter the position. Does anyone see a strong reason not to?
••