As the Fed Steps Back From Mortgage Market, REITs Gear Up to Buy
- REITs on track this year to raise most equity since 2013
- Taper may be ‘largest growth opportunity’ in Annaly’s history
Fed Leaves Rates Unchanged, Asset Unwind to Start in Oct.
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Many fund managers are fearful about the Federal Reserve shedding its massive $1.78 trillion mortgage bond portfolio, a step it plans to start next month. Some investors say it’s time to get greedy.
Some mortgage bond fund managers known as real estate investment trusts have been raising cash at their fastest pace since 2013, giving them enough new capacity to buy more than $30 billion of the securities, according to data compiled by Bloomberg. And banks have added almost $100 billion of mortgage bonds to their books this year, Fed data show, and their demand doesn’t seem to be waning.