MFA Financial Successfully Navigates the Coronavirus Crisis
While the coronavirus crisis has been hard on the mortgage real estate investment trust (mREIT) sector, some companies operating within it have had a harder time than others.
MFA Financial (NYSE: MFA) was definitely one such company that really struggled to navigate the crisis. Like most mREITs, MFA experienced a wave of margin calls, and since its assets were less liquid than agency mortgage-backed securities, it suffered through bigger mark-to-market losses (mark to market is a way to measure the fair value of accounts that can fluctuate over time).
Unable to meet margin calls, MFA was forced to enter into forbearance agreements with its creditors.
Source Fool.com
