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RY - Royal Bank Of Canada News Story

C$89.33 -2.0  -2.2%

Last Trade - 29/05/20

Sector
Financials
Size
Large Cap
Market Cap £76.70bn
Enterprise Value £215.81bn
Revenue £27.19bn
Position in Universe 1st / 2659

BUZZ-Mortgage REITs resume slump; Western Asset joins dividend suspension parade

Mon 30th March, 2020 5:29pm
** Western Asset Mortgage Corp  WMC.N  shares down ~30% Mon
as co is among wave of mortgage REITs suspending their dividends
amid current market turmoil
    ** WMC late Fri suspended its Q1 common stock dividend and
estimated its book value/sh has declined 55%-60% since end-Dec
 urn:newsml:reuters.com:*:nPn5bGx5fa
    ** Co said has met margin calls as of Fri, and increasing
portfolio liquidity and reducing leverage by selling securities
and restructuring or eliminating associated hedges
    ** BofA Global Research downgrades WMC to "neutral" from
"buy" and slashes PT from $10.50 to $4.00
    ** WMC, subsidiary of Legg Mason, Inc, manages diverse
portfolio, including both agency and non-agency RMBS
(residential mortgage-backed securities)
    ** Last month, Franklin Resources  BEN.N  said it would buy
Legg Mason and affiliates in deal expected to close in Q3 2020
    ** AG Mortgage Investment Trust  MITT.N  down 28% after co
late Fri suspended dividend payments on its common and preferred
stocks, and sold its agency RMBS portfolio  urn:newsml:reuters.com:*:nBwbMnhlSa
    ** New York Mortgage Trust  NYMT.O  down 15% after co early
Mon said it sold MBS receiving proceeds of ~$1.7 bln, and
estimates its book value/sh for Q1 will decline by ~33% since
end-Dec  urn:newsml:reuters.com:*:nGNX7QMHX4
    ** Mortgage REITs have been crushed this month; the Fed
started a new commercial MBS buying program on Fri to help
mitigate the volatility created by the COVID-19 pandemic
 urn:newsml:reuters.com:*:nL1N2BM04Q
    ** Meanwhile, the Mortgage Bankers Association warned on Sun
in letter to the SEC and FINRA that the Fed's emergency
purchases have unintentionally put mortgage industry at risk by
forcing a deluge of margin calls on hedges lenders entered into
to protect themselves from losses, CNBC reports https://www.cnbc.com/2020/03/29/mortgage-bankers-warn-fed-purchases-of-mortgages-unbalanced-market-forcing-margin-calls.html
    ** On Mon, Dow Jones U.S. Mortgage REITs index and iShares
Mortgage Real Estate ETF  REM.N  down 8.3% and 6.6%,
respectively

 (Reporting by Lance Tupper)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))
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