American Capital and ARMOUR to Benefit From Low Benchmark Interest Rate to at Least Mid-2015
18 Septembre 2012 - 2:20PM
Marketwired
High Yielding REITs have surged in 2012 as the U.S. housing market
has experienced a steady recovery. The Market Vectors Mortgage REIT
ETF (MORT) recently hit a new 52-week high and is up over 20
percent for the year. The Federal Reserve Last Thursday announced
the implementation of Quantitative Easing 3, which will focus on
bond purchases in the mortgage market. The Paragon Report examines
investing opportunities on diversified REITS and provides equity
research on American Capital Agency Corp. (NASDAQ: AGNC) and ARMOUR
Residential REIT, Inc. (NYSE: ARR).
Access to the full company reports can be found at:
www.ParagonReport.com/AGNC www.ParagonReport.com/ARR
In a statement released last Thursday the Fed announced it would
purchase $85 billion in bonds a month for the rest of 2012. In
2013, the Fed will then continue to purchase $40 billion per month
of mortgage backed securities indefinitely until they believe the
economy does not require the support. Also the benchmark interest
rate is to remain low until at least mid-2015, six months longer
than previously planned.
"These actions, which together will increase the Committee's
holdings of longer-term securities by about $85 billion each month
through the end of the year, should put downward pressure on
longer-term interest rates, support mortgage markets, and help to
make broader financial conditions more accommodative," the Fed
statement said.
The Paragon Report releases regular market updates on the
diversified REITS so investors can stay ahead of the crowd and make
the best investment decisions to maximize their returns. Take a few
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American Capital has $101 billion in assets under management and
seven offices in the U.S. and Europe. American Capital and European
Capital will consider investment opportunities from $10 million to
$500 million. The company declared a cash dividend of $1.25 per
share for the second quarter 2012, for a yield of roughly 14.6
percent.
ARMOUR is a Maryland corporation that invests primarily in
hybrid adjustable rate, adjustable rate and fixed rate residential
mortgage-backed securities issued or guaranteed by U.S.
Government-chartered entities. The company recently reported that
James R. Mountain will become the company's new Chief Financial
Officer, effective September 1, 2012.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at: http://www.paragonreport.com/disclaimer
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