Bullish Signals At This 12% Yielding mREIT: Invesco Mortgage Capital Inc (IVR), American Capital Mortgage Investment Crp (MTGE), Western Asset Mortgage Capital Corp (WMC)

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Invesco Mortgage also competes with American Capital Mortgage Investment Crp (NASDAQ:MTGE). Around 90% of the company’s portfolio is Agency RMBS, while the remainder is non-Agency RMBS. Within the Agency RMBS portfolio, the 30-year fixed rate securities dominate, accounting for 63%, followed by 20-year fixed rate at 35% of the Agency RMBS. MTGE also reported solid performance for the fourth quarter. Average asset yield increased 11 bps, while it realized significant gains on the sale of MBS during the quarter. Both factors contributed to help double American Capital Mortgage Investment Crp (NASDAQ:MTGE)’s bottom line.

Conclusion

Given the prevailing challenging macroeconomic environment, hybrid REITs provide an excellent opportunity to enhance your regular income. Invesco Mortgage reported a strong fourth quarter, and the insiders’ bullishness leads me to think further growth in the bottom line can be expected in the coming quarters. Therefore, investors should consider investing in Invesco Mortgage.

The article Bullish Signals At This 12% Yielding mREIT originally appeared on Fool.com and is written by Adnan Khan.

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