Mortgage REITs eye 3-day win streak
08/04/2020 14:30
** Mortgage REIT stocks rising premarket and on track for
third straight session of gains as more cos provide business
updates amid market dislocations created by the COVID-19
pandemic
** The iShares Mortgage Real Estate ETF REM.N is up 12%
premarket. The ETF has risen in both sessions this week for ~18%
gain
** Dow Jones Mortgage REIT index .DJUSMR has also advanced
past 2 sessions and is up ~15% WTD
** Ellington Financial EFC.N jumping >50% premarket. Co
late Tues estimated its book value/sh was $15.08 at end-Mar,
said has met all margin calls, lowered leverage and declared 8
cents/sh dividend on its common payable May 26 urn:newsml:reuters.com:*:nBw3qg7p0a
** New York Mortgage Trust NYMT.O up 40% premarket after
it said late Tues it has been selling bonds since late Mar to
raise cash and seeking longer-term financing for some securities
in its portfolio urn:newsml:reuters.com:*:nGNX6P2rSk
** Industry heavyweight Annaly Capital Management NLY.N up
24% premarket after co's rosy update late Tues. Said its
portfolio comprises 93% of agency MBS at end-Mar, estimates book
value/sh of $7.40-$7.60 vs $9.66 at end-Dec, and said repo
operations have been orderly with no collateral or margining
issues urn:newsml:reuters.com:*:nBw3w2XJZa
** mREITs have been rocked by volatility and margin calls,
forcing them to sell assets and/or slash their dividends due to
bond market volatility created by COVID-19 pandemic
** In addition, Chimera Investment Corp CIM.N up 4% before
the bell after co bumps its capital raise by 30%, pricing $325
mln convertible bond deal urn:newsml:reuters.com:*:nL1N2BW0DK
(Reporting by Lance Tupper)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))