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Thanks. What do you think of PMT? I can't get past the 11% yield. I guess there are some pretty big risks there to justify that yield?
by tocomment 13y ago
Thanks. What do you think of PMT? I can't get past the 11% yield. I guess there are some pretty big risks there to justify that yield?
- smartician 13y agoLooks like PMT is an mREIT (mortgage REIT), so instead of physical properties they buy mortgage loans. Different ballgame in the same stadium, so to speak. There are others: AGNC yields 20%, CYS 16%. I used to have an ETF that holds a portfolio of these (REM), which might be a good way to diversify as they all have slightly different strategies for investing and hedging. I got out recently, it's just too unpredictable. These funds achieve their high yield by being leveraged 10x-20x, so any impact from external factors like interest rate spread and policy changes is highly amplified. Though I still have some exposure to the sector through other funds like AWP and SDIV.