Home>Topics>>The Purest Form Of Accretion Among Mortgage REITs
The Purest Form Of Accretion Among Mortgage REITs
Financial Sector and Stocks Analysis from Seeking Alpha
Tue, 1 Jan 2013
By Dane Bowler : Quantitative easing brought with it reduced spreads for mREITs and the constant threat of prepayment. Consequently, market prices have plummeted well below book value for many of these companies. This introduces an opportunity for the purest form of value accretion: share buy-back. ...
Although the Fed hopes more quantitativeeasing will raise asset values and spur the wealth effect, it runs the risk of blowing another bubble, says Morningstar's Bob Johnson.
The Vanguard bond manager says inflation will move higher, but won't get out of control, and also offers his take on the end of the Fed's quantitativeeasing program.
Given the likelihood that the Fed's additional quantitativeeasing will be more modest, the effect should largely already be priced into the bond marketplace today, says Western Asset CIO Steve Walsh.