AGNC and NLY, among others, have been on an absolute tear lately, up ~80% since November. I can’t figure out why. I sold out of a position prior to the run based on research done regarding mREITs in rising-rate environments.
From their last few earnings reports:
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Interest income steadily decreasing, net interest income also decreasing.
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Fixed-rate Agency MBS value decreasing for five consecutive quarters on balance sheet.
and that’s really it. I understand these are interest rate sensitive, which makes me think there’s really nothing going for the industry as a whole. Why are these rallying so hard?
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