Few sectors of the economy benefited from the financial crisis as much as mortgage REITs like Annaly Capital Management and American Capital Agency . When short-term interest rates plunged in response to the crisis, leveraged funds like these made a killing thanks to the increased spread between short- and long-term rates.
But this trend has since reversed itself in response to three successive rounds of quantitative easing. In the video below, Motley Fool contributor John Maxfield explains why investors should be particularly concerned about this sector now.
The article Why Investors Should Be Worried about Mortgage REITs originally appeared on Fool.com.John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.