Rebound: Mortgage REIT sector on track for 60% gain for the week
09/04/2020 15:34
** Mortgage REITs advancing for 4th straight session Thurs
as the broader market jumps after Fed announces massive stimulus
** Fed rolls out $2.3 trln to backstop "Main Street" and
local governments in its latest effort to keep U.S. economy
intact amid the coronavirus pandemic. urn:newsml:reuters.com:*:nL2N2BX0J1 S&P 500 index
.SPX up 1.6%
** Dow Jones Mortgage REIT index .DJUSMR and The iShares
Mortgage Real Estate ETF REM.N both surging ~15% Thurs. DJUSMR
and REM on course to notch WTD gains of ~57% and ~62%,
respectively
** mREITs have been battered by volatility and margin calls,
forcing them to sell assets and/or slash their dividends due to
market dislocations created by COVID-19
** Among biggest winners Thurs include: Granite Point
Mortgage GPMT.N 45%, Ladder Capital LADR.N 33%, New York
Mortgage NYMT.O 27% and Invesco Mortgage IVR.N 25%
** Annaly Capital Management NLY.N , Starwood Property
STWD.N and Blackstone Mortgage BXMT.N gaining 13%-18%
** Mortgage servicers/lenders also up: Walker & Dunlop
WD.N 13% and Cherry Hill Mortgage CHMI.N 15%, while Mr.
Cooper Group COOP.O shrugs off Piper Sandler downgrade to
"underweight" from "overweight" and rises 13%
(Reporting by Lance Tupper)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))