Remove Collateral Remove Financing Remove Leveraging
article thumbnail

The Open Secret That Is AGNC Investment's Achilles' Heel

The Motley Fool

However, it is still a company so it has more leeway in the way its business gets financed. The big open secret here is that AGNC, like other mortgage REITs , makes liberal use of leverage in an effort to enhance shareholder returns. In and of itself using leverage isn't a bad thing, but it increases risk.

article thumbnail

How Coinbase's Newest Innovation Could Boost Bitcoin's Long-Term Value by Billions

The Motley Fool

Without smart contracts, Bitcoin holders are unable to directly participate in the rapidly growing decentralized finance (DeFi) economy, where users engage in lending, borrowing, yield farming, and even buying non-fungible tokens (NFTs). However, with the introduction of cbBTC, Bitcoin holders can now leverage their assets within DeFi easily.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

A Bull Market Could Be Here: AGNC Investment Isn't the Bargain You Think

The Motley Fool

This is vastly different from property-owning REITs, which are fairly simple to understand using kitchen table finance. Mortgage REITs buy mortgages that have been cobbled together into bond-like securities, often called collateralized mortgage obligations (CMO). Basically, you buy a property and rent it out. A lot can go wrong.

Investing 246
article thumbnail

Angelo Gordon Raises $1bn for Asset Based Specialty Private Credit Opportunities

Private Equity Insights

The Fund focuses on asset-based specialty private credit investments in a variety of trade formats across a broad array of collateral types within consumer, real asset, and other specialty lending markets.

Assets 130
article thumbnail

Private Credit: From Mid-Market to Real Economy Financier

Blackstone

A powerful shift is underway in credit markets as private lenders partner with banks to finance real economy assets. The first phase started with corporate direct lending, where lenders financed smaller, middle-market companies. Private capital financed 86% of LBO transactions in 2023, up from 65% in 2021.

Financing 121
article thumbnail

Better Buy: EPR or AGNC?

The Motley Fool

EPR owns physical properties, while AGNC invests in mortgages that have been pooled into bond-like investments often called collateralized mortgage obligations (CMOs), or something similar. Leverage, meanwhile, plays an important role for mortgage REITs, with the portfolio of CMOs often acting as collateral.

article thumbnail

I'm Not Buying Annaly Capital. Here's Why.

The Motley Fool

Generally, this comes in the form of mortgages that have been pooled together into bond-like securities called collateralized mortgage obligations (CMOs), or something similar. Adding to the concern here, REITs like Annaly often use leverage to enhance returns. In this way, it is something like a mutual fund or asset manager.

Capital 130