By Marc Lichtenfeld Not surprisingly, shares of mortgage real estate investment trusts (REITs) have been hammered in the COVID-19 crisis.
(On Monday, I explained whether you should still invest in these stocks. Click here for my analysis.)
Things were already difficult in the industry due to low interest rates.
Mortgage REITs borrow money short term and lend it out longer term. The difference in the interest that they pay and that they receive (after expenses) is net interest income.
With rates so low and the spread between short- and longer-term rates so tight, net interest income has been squeezed.
Then came the coronavirus, sending interest rates plummeting further …read more
