Cheer Up

How gloomy are investment managers these days? Leveraged short gloomy. From the NAAIM:



Anonymous said...

concerning, NLY , i read that it yields 14% --- so where's the catch? what's the risk other than obviously  the stock price going down... and could you explain to me why Operation Twist can have a  negative impact on REITs

Tsachy Mishal said...

The reason I bought is because they only hold agency securities and there is no reason they should trade below book value. Agency securities have an implicit government backing and are money good. The yield can go down if their trade becomes less profitable as a result of Operation twist. But, in my book that is not a reason for the shares to trade below book.