Annaly Capital Management, Inc. (NLY), American Capital Agency Corp. (AGNC), ARMOUR Residential REIT, Inc. (ARR): Mortgage REITs Have Fallen, and They Can’t Get Up

For mREITs, though, even a settling of nerves won’t be enough to put everything back to rights, in my opinion. The extent to which they have been dinged has brought them into the limelight, bringing into question their long-term investment value. In addition, the recent decline has exposed chinks, particularly in ARMOUR Residential REIT, Inc. (NYSE:ARR). Long thought to be a particularly risky prospect, the company has experienced heavy investor flight, indicating that stockholders are beginning to share that opinion. Comments from co-CEO Jeffrey Zimmer insisting that all is well surely haven’t helped matters.

I still believe that, in the long run, the sector will survive and thrive — although there may be a few casualties. QE3 was never meant to last forever, and the mREITs that planned ahead for this event will do just fine. In the short term, though, the sector will continue to suffer, as will its investors.

The article Mortgage REITs Have Fallen, and They Can’t Get Up originally appeared on Fool.com.

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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