American Capital Mortgage Investment Crp (MTGE), American Capital Agency Corp. (AGNC): Mortgage REITs Churn As Fed Hedges About QE3

As for agency mREITs, some are making changes, and others are staying the course. For Annaly Capital Management, Inc. (NYSE:NLY), its foray into the commercial MBS market seems to be insulating it from some of this recent volatility, and ARMOUR Residential REIT, Inc. (NYSE:ARR) has made the necessary changes to its charter so that it can buy non-agency paper, though it has yet to take the plunge.

As for American Capital Agency Corp. (NASDAQ:AGNC), CIO Gary Kain seems adamant that the trust will stay true to its agency roots, noting at a recent presentation that investors who like a little more diversity can invest in American Capital Mortgage Investment Crp (NASDAQ:MTGE), the hybrid cousin of the agency mREIT.

As is usually the case, taking the long view will likely give the best investment results. Downturns like these are bound to happen from time to time, and savvy investors just might see this as an opportunity to bulk up their portfolios before normalcy returns.

The article Mortgage REITs Churn As Fed Hedges About QE3 originally appeared on Fool.com is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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