Two Harbors Liquidates Its Credit Portfolio to Focus on Agency MBS and Servicing
For just about every mortgage REIT, the COVID-19 crisis has been devastating financially. No strategy was safe during this period, as even REITs with government guaranteed assets saw book values take dramatic hits.
In particular, the volatility in the month of March was unprecedented, as bonds traded like tech stocks. While nearly every major mortgage REIT reacted by deleveraging, they made different choices as to which securities to sell and which to retain. Here is how one handled it.
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Source Fool.com
