Rate Hikes on the Horizon?
Last week, Charles Plosser, president of the Federal Reserve Bank of Philadelphia, gave a speech outlining a plan for tightening and selling off some Federal Reserve assets.
This article summarizes the plan and takes a quick look at how it might impact mortgage REITs. The big dividends from Annaly and companies like it have rewarded share holders, but I believe it's time to start thinking about an exit strategy and what would signal 'time to sell'.
Please feel free to share your opinion on where we are in the business cycle for mortgage REITs with a comment here or at the article.
Disclosure: Long Hatteras Financial, one of the REITs mentioned in the article.