Here's Why AGNC Investment Corp Fell Nearly 30% in September
In the month of September, shares of the mortgage real estate investment trust (mREIT) AGNC Investment Corp (NASDAQ: AGNC) fell close to 30%, according to data provided by S&P Global Market Intelligence.
REITs offer investors an easier way to invest in real estate because investors don't have to buy any actual real estate themselves. They buy shares like any other stock and then the management team does various types of investment strategies. To qualify as a REIT, the company must pay out at least 90% of its taxable income in dividends to shareholders. Mortgage REITs are simply REITs that invest in mortgages and MBS.
Like most of the stock market, mortgage REITs have been suffering as the Federal Reserve has aggressively raised its overnight benchmark lending rate. Mortgage rates have exploded higher and outpaced treasury yields, leading MBS spreads to widen as well.
Source Fool.com
