Topic: REITS Unable to Meet Cash Calls From Lenders
Posted by .
Unregistered


Financial Times London
March 24, 2020

Shares of some of the largest funds invested in the residential mortgage-backed securities market tumbled after two companies — Invesco Mortgage Capital and MFA Financial — said that they had been unable to meet cash calls from their lenders as the price of mortgage bonds slid.

MFA lost an eye-watering 87 per cent of its value on Tuesday, with its shares closing at 36 cents, while Invesco Mortgage Capital declined almost 53 per cent to $2.52.


Posted by .
Unregistered


This has nothing to do with REITS.


Posted by .
Unregistered


. said: This has nothing to do with REITS.

­
Are you calling me a liar?


Posted by .
Unregistered


Make the cash call
\
:casey:


Posted by .
Unregistered


. said:
. said: This has nothing to do with REITS.

­
Are you calling me a liar?

­
No, I'm calling you a dumbass.

:dumbass:


Posted by .
Unregistered


. said:
. said: This has nothing to do with REITS.

­
Are you calling me a liar?

­No actually you are dumb as a rock


Posted by .
Unregistered


Wait, so these companies borrow money to invest in mortgages? What the fuck is the point. Why wouldn't their lenders just invest in the mortgages directly?


Posted by .
Unregistered


REIT is 'real estate investment trust'?  Large groups of properties bundled together of which shares are sold to investors?

Would seem these two companies mentioned and perhaps many others like them are the canary in the coal mine?


Posted by .
Unregistered


. said: Wait, so these companies borrow money to invest in mortgages? What the fuck is the point. Why wouldn't their lenders just invest in the mortgages directly?

­
Same reason you buy a mutual fund, rather than buying the individual stocks yourself.


Posted by .
Unregistered


. said:
. said: Wait, so these companies borrow money to invest in mortgages? What the fuck is the point. Why wouldn't their lenders just invest in the mortgages directly?

­
Same reason you buy a mutual fund, rather than buying the individual stocks yourself.

And if companies offering these funds or connected to them were having cash flow troubles, it would be bad, right?


Posted by .
Unregistered


. said:
. said:
. said: This has nothing to do with REITS.

­
Are you calling me a liar?

­
No, I'm calling you a dumbass.

:dumbass:

­
Ok. As long as you aren’t calling me a liar. That would upset me.


Posted by .
Unregistered


. said: This has nothing to do with REITS.

On Tuesday, Invesco Mortgage Capital (ticker: IVR) lost about half its value after it said it can no longer meet margin calls and will delay its previously announced dividend payments until its cash situation improves.


At least two other mortgage REITs have also asked for forbearance from counter-parties because they can’t meet their margin calls during the historic market volatility: New York Mortgage Trust (NYMT) and AG Mortgage Trust (MITT). Their shares were recently down 44% and 9%, respectively.­

https://www.barrons.com/articles/mortgage-reits-come-under-stress-that-even-the-fed-might-not-be-able-to-ease-51585073391


Posted by .
Unregistered


. said:
. said:
. said: This has nothing to do with REITS.

­
Are you calling me a liar?

­
No, I'm calling you a dumbass.

:dumbass:

­
:lol:


Posted by .
Unregistered


. said:
. said: Wait, so these companies borrow money to invest in mortgages? What the fuck is the point. Why wouldn't their lenders just invest in the mortgages directly?

­
Same reason you buy a mutual fund, rather than buying the individual stocks yourself.

­
But mutual funds don't borrow money.


Posted by .
Unregistered


. said:
­
But mutual funds don't borrow money.

­
Companies within mutual funds borrow money.

And with REITS, the loans are collateralized.  You can take the houses.  So, you're actually buying the note on the house.


Posted by .
Unregistered


The collapse of two leveraged exchange-traded notes was another contributor to recent weeks’ market pressure. UBS redeemed its Etracs Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) and that ETN’s Class B shares (MRRL) after they slid 96% in seven days.

In a late Sunday post on Medium, Colony Capital CEO Tom Barrack warned about potential longer-term fallout in the corner of the market where investors finance businesses’ mortgages. He highlighted the recent crunch in MBS repo markets and warned that continued margin calls on those transactions could overwhelm the mortgage REITs.


Posted by Duckford.nli
Unregistered


The big bail out is going to keep the train wreck from happening?  Right?

RIGHT?


Posted by .
Unregistered


No... Fuck You... Pay Me....
  \
:gonzo:

:jew:   :machinegun:­


That's how you stop Jew shenanigans.
:arab:


Posted by .
Unregistered


What does this have to do with anal sex?


Posted by .
Unregistered


Duckford.nli said: The big bail out is going to keep the train wreck from happening?  Right?

RIGHT?

­
20 year worldwide depression coming. :sadwave:


Posted by .
Unregistered


. said: Make the cash call
\
:casey:

:potd:



Quick Reply
Moniker:
 

Registration Required

Thank you for your vote!

But in order to make it count, you must be a registered user.

Log In | Register | Close