Collateral Leveraging Mutual Funds 
The Motley Fool
JANUARY 10, 2024
And such REITs often employ leverage, usually using their loan portfolio as collateral, to enhance returns. In some ways, a mortgage REIT is more like a mutual fund than a company. And they are certainly nothing like a landlord.
The Motley Fool
MAY 4, 2024
Its revenue comes from the interest it collects on these bond-like securities, often called something like a collateralized mortgage obligation. For starters, that's more like a mutual fund model than a typical REIT model, given that there are no operating assets involved. Image source: Getty Images.
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The Motley Fool
DECEMBER 7, 2023
A mortgage REIT like AGNC buys mortgages that have been pooled into bond-like securities, often referred to as something like a collateralized mortgage obligation (CMO). Generally, leverage is employed so that more CMOs can be bought, with the CMO portfolio acting as collateral for the loan.
The Motley Fool
JUNE 23, 2023
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. In this way, it is something like a mutual fund or asset manager. Adding to the concern here, REITs like Annaly often use leverage to enhance returns.
The Motley Fool
APRIL 29, 2024
These capital market levers allow us to deploy intelligent leverage to increase our Bitcoin holdings in a manner which we believe has created shareholder value. Leverage provides the opportunity to generate higher returns if the price increases. billion using net proceeds from our two convertible node issuances in March.
The Motley Fool
JUNE 14, 2024
In this way, it's kind of like a mutual fund that focuses on mortgages. They tend to use leverage, often with the portfolio of mortgage securities acting as collateral. That's because the REIT buys mortgages that have been pooled together into bond-like securities. Image source: Getty Images. That increases risk.
The Motley Fool
SEPTEMBER 18, 2023
Blackstone focuses on alternative investments in real estate, private equity, hedge fund products, and credit products such as collateralized loan obligations. Blackstone utilizes its expertise to take nontraditional approaches to investing in less-liquid asset classes and can also use leverage to boost returns.
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