There's nothing sexy about mortgage real estate investment trusts. They can't talk to you like Siri or deliver packages with drones like Amazon envisions. But they currently yield 13 percent while Treasury bonds yield only 3.8 percent.
Gary Kain built American Capital Agency Corp. into the fastest growing real estate investment trust as the Federal Reserve pushed borrowing costs to record lows. Now he’s trying to persuade investors to stay with him as he navigates the central bank’s retreat.
Gary Kain spent 20 years at Freddie Mac managing as much as $800 billion of bonds before the U.S. took over the company. Since 2009, he’s used his knowledge of the home-loan market to help turn American Capital Agency Corp. into the fastest growing mortgage debt investor.
Anton Valukas, the examiner who wrote a 2,209-page report about the downfall of Lehman Brothers Holdings Inc. , will ask the bankruptcy judge at a June 17 hearing to give him a release, prevent anyone from suing him and his lawyers, and prohibit anyone from calling him as a witness.
Risk appetites in American capital markets diminished amid the U.S. budget impasse, pushing Treasury one-month bill rates to the highest since 2008 and Internet stocks to the biggest losses in two years.
Steven Hoffman, owner of a wooden button factory in Brooklyn, New York, was drawn into real estate investment trust CYS Investment Inc. by its 12 percent dividend yield. After buying 2,000 of shares a year ago that have since dropped more than 43 percent amid concern the Federal Reserve would reduce its economic stimulus, he’s now anxious his payout will be cut.