Mortgage REITs Are Bad Long-Term Investments

The average annualized NAV return since inception for 15 residential mortgage REITs is 3.5% The average annualized NAV return since inception for 10 commercial mortgage REITs is 2.7% Mortgage REITs have complexity, volatility, and high overhead, but many fail to¬† outperform unlevered bond portfolios. Large discounts may provide opportunities for short-term outperformance New Residential, AGNC, … Continue reading Mortgage REITs Are Bad Long-Term Investments