http://seekingalpha.com/article/288828-american-capital-agency-20-yield-means-cash-in-the-bank Does it all make sense? What is the catch here?
Catch? What catch? It is free money. Leverage it up 4 to 1 and get 78% yield. Mo' mo' mo' mo' free money.
Do some research and post your results. Why should we do your analysis for you? Lazy people deserve to lose money.
every turkey with a pulse is in this one. the story is compelling, but theres always a chance that you wake up one morning and this is down 30%. Maybe more. seems like a good racket, so why are so many hedge funds not just playing this game instead of torturing themselves.
http://www.agnc.com/ "We fund our investments primarily through short-term borrowings" If short term interest rates change then income and dividend might change. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3279317 \img>
Seeing so many articles about mREITS on SA and in the financial news in recent weeks, I'm very leery of entering into them right now as anything other than a speculation that might pay me something along the way. Based on media/commentary levels alone, the mREIT thing almost feels "bubble-ish" to me. Heck, van Eck just rolled out an ETF comprised exclusively of mREITS this week....IMHO when ETFs pop up in a hot space that might make folks pause before plunging into the sector, even with such enticing dividends.
Model says it is slightly more risky than the market: http://www.elitetrader.com/vb/showthread.php?s=&postid=3281840#post3281840