Mortgage REITs are mostly in the green after the NY Fed injected liquidity through repo operations for two days in a row and before the Fed’s monetary policy decision this afternoon.
In a note on Monday, Keefe Bruyette & Woods analysts explained that the recent spike in overnight repo rates shouldn’t increase mortgage REITs’ funding rates much since they typically fund with term repo, usually one to three months.
iShares Mortgage Real Estate Capped ETF (BATS:REM) and VanEck Vectors Mortgage REIT Income ETF (NYSEARCA:MORT) are up 0.1%, not much of an increase but better than the Financial Select Sector SPDR ETF’s (NYSEARCA:XLF) 0.5% decline.
By name AGNC Investment (NASDAQ:AGNC) rises 0.7%, Chimera Investment (NYSE:CIM), gains 0.6%, and Orchid Island is up 0.4%.
Previously: NY Fed takes up $75B of Treasurys, securities (Sept. 18)
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