Capstead Mortgage Corp (NYSE:CMO)
CAPS Rating:
The Company operates as a real estate investment trust for federal income tax purposes.
The Company operates as a real estate investment trust for federal income tax purposes.
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The credit crises and morgage meltdown in the U.S. isn't going anywhere this summer and is likely to only get worse. If Bear Sterns couldn't survive what hope is their for the rest of the financial sector. Yes, the financial sector seems to be jumping back and key reversals seem to be lifting bullish investors, but this ray of hope will end once investors understand how bad this looming recession is going to be. Even the hopeful and growing few in the financial sector are going to suffer from the troubles of the many.
Do your homework. This company is 99% in gov. guaranteed mortgages. The only way they fail is if the US gov. fails.
Fannie and Freddie were for many years safe to own-- if I owned anything guaranteed by our govt. I certainly would check it daily.
This is the safest high yielder in the market. The fact is, their business model is the best... hands down. period, end of dicussion... oh yeah even better than everyone's beloved NLY