Annaly Capital Management, Inc. (NLY)’s REIT Is Making a Jumbo Profit

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What does this mean for Annaly and Armour? In my opinion, it presents a golden opportunity. While Annaly has stuck to its agency-only mantra for its entire existence, it has recently shown some flexibility in its bid for commercial MBS investor Crexus Investment Corp (NYSE:CXS). And, though Armour hasn’t taken the plunge yet, it did change its charter to allow for non-agency paper investments if management saw opportunities in that sector.

Will either of these mREITs take the plunge? The market for jumbo loans is expected to jump by at least 15% this year, and as long as housing improves, there seems no end in sight. As a way to increase those spreads, it looks like a great investment.

The article This Mortgage REIT Is Making a Jumbo Profit originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management and JPMorgan Chase.

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