Yield-starved investors unwilling to accept a 90% reduction in income have been forced to look elsewhere for yield. One sector that still provides double-digit returns is mortgage REITs, known as mREITs. While yields on fixed income instruments have plunged, the mREIT sector has provided excellent returns to income-seeking investors for the past several years.
These attractive mREIT yields are now facing a threat. On Friday April 19th, the Wall Street Journal ran two articles that suggest the mREIT sector is about to face regulatory action. My belief is that mREITs provide useful liquidity to the housing market and do not pose a threat to the financial system as a whole. In fact, they move risk from the "system" to individual investors because nobody would say that mREITs are "too big to fail". Nonetheless, regulators and legislators who were burned by the housing crash and subsequent great recession are apparently on a path to increase regulatory requirements on the industry which could derail the mREIT gravy train.
Source: Seeking Alpha
Related Articles:
- Mid-Year 2012 Top And Bottom Performing Dividend Stocks
- A Simple Approach To Earn More Than 4% In Dividends
- 5 Basic Materials Stocks With Growing 3%+ Dividends
- What To Do When A Stock Fails To Raise Its Dividend
- A Diversified Approach To International Dividends
mREITs Facing Attack From Regulators
Posted by D4L | Saturday, May 04, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
These investments take advantage of the potential for growth in the share price and dividend yield. Yet, when it comes to undervalued compan...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.