From the category archives:

High Yield

Newcastle’s High Yield Going Higher?

August 27, 2008

The gap between the perception of the risks in mortgage debt and the actual risks is now the exact opposite of where it was just before the credit crunch began.
Let’s see, there are a few positive things happening out there and I think I need to write about them before my prescription runs out…
First, it’s [...]

More on this topic (What's this?)
The ten year dividend growth requirement (Dividend Growth Investor, 3/3/10)
Dividend Investing: Two Common Questions? (Dividend Tree, 1/28/10)
12 High Yield, Rising Dividend, Low Payout Stocks (Scott's Investments, 2/26/10)
Read more on Dividend Investing, Newcastle Investment at Wikinvest
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Earlier Vintage CMBS "Grossly" Mispriced

August 23, 2008

In an earlier article (“Mortgage REIT Yields Still Look Safe, But Stick to the Seasoned Veterans”), I wrote that high yield Mortgage REITs with relatively “seasoned” portfolios offered much better safety and value than those with portfolios stuffed full of more recent vintage CMBS. Now, analysts at Barclays Capital also say that the pricing on [...]

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Crystal River’s New Loss-Driven Investment Strategy

August 20, 2008

“The future ain’t what it used to be”Yogi Berra
Crystal River (CRZ) has had an absolutely terrible time of it. The REIT went public at $23 a share in July of 2006, and then blew through about $350 million, or almost $14 per share, in just eighteen months.
The second quarter of 2008 continued to show the [...]

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Putnam Investments Sees "Free Lunch" in CMBS

August 15, 2008

This article, published yesterday in American Banker, pretty much sums it up. BBB CMBX spreads, which have been climbing throughout July and August (Markit Group Says “Bienvenido!”), are now about 2500 basis points over Treasuries, which would equate to just about a 30% (!) yield.
Despite the credit crisis—or perhaps because of it—there has never been [...]

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Mark to Market Losses Starting to Reverse?

June 17, 2008

In the first quarter of 2007, subprime mortgages provided the first sign of trouble in the credit markets as falling housing prices began to hit borrowers hard. But in the first quarter of 2008, home-equity lines of credit became the new canary in the coal mine. Lenders such as National City have frozen existing home [...]

More on this topic (What's this?)
CHART OF THE DAY: ARE HOME PRICES FALLING AGAIN? (THE PRAGMATIC CAPITALIST, 2/24/10)
Even the Dead Cats Aren't Bouncing (Financial Armageddon, 3/2/10)
The Worst Is Not Over (Financial Armageddon, 1/2/10)
Read more on U.S. Housing Market at Wikinvest
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Muddled REIT Book Values Create Opportunities

March 11, 2008

REITWrecks: March 11, 2008
Investing in REITs is not for the faint of heart these days. Write-downs are easier to come by than cheap commissions, and huge losses are more common than ice cubes in a fresh cocktail. And while you may need a cocktail if you own any of these stocks, calculating GAAP book [...]

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