[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y ] [Search | Free Show | Home]

give me reasons why I shouldn't buy MORL for that juicy

This is a blue board which means that it's for everybody (Safe For Work content only). If you see any adult content, please report it.

Thread replies: 21
Thread images: 3

File: image.png (76KB, 750x1334px) Image search: [Google]
image.png
76KB, 750x1334px
give me reasons why I shouldn't buy MORL for that juicy 21% dividend yield. REIT fund by UBS with 24 mid-large cap holdings
>>
>>1737564
>leveraged ETN REIT

Wew fucking lad, this is definitely one for the risk takers

Apparently it only holds US-listed mortgages, are there any significant indicators of a housing bubble around cities ect? Im assuming you're going long on this right?

Ive never seen something like this pay out monthly dividends, or is that standard for REITs?
>>
>>1737564

Anything with a 21% dividend yield should be viewed with extreme skepticism. Is their portfolio extremely risky? Will rising interest rates affect their solvency?

Good money typically does not get left on the table in today's market.
>>
>>1737589
it's not unusual for REITs to pay monthly distributions.
Definitely would be a "buy and forget" strategy
>>
>>1737564
>>1737564
>Mortgage REIT.
>Mortgage REIT.
>Mortgage REIT.

If that doesn't sound like nuclear klaxon alarms when you read it, you might be too stupid to survive.
>>
File: image.png (151KB, 750x1334px) Image search: [Google]
image.png
151KB, 750x1334px
here are the holdings with corresponding weights
>>
>>1737603
Why?
>>
>>1737606
These all seem like normal companies wonder what the catch is. It has a lot of volatility because 2x leverage but not sure if that matters..
>>
>>1737653
Right? 21% yield seems like a great deal given the holdings. It's all multi-billion dollar REITs
>>
File: th.jpg (13KB, 288x192px) Image search: [Google]
th.jpg
13KB, 288x192px
>>1737609
LOL, man you might want to do some research or read a fucking book or something.

Pic related it's your face in a couple months if you hold on to that toxic shit.
>>
>>1737689
Why? Please explain why that's the case. It's an REIT fund that captured income from residential real estate
>>
>>1737696
I can't be assed to explain in full. There is a reason major investors avoid these sorts of REITs. Basically people do not pay their mortgages, the REITS list their assets as loans they do not own, do not control and are held by banks for consumers that will 9 times out of 10 go bankrupt once the next recession hits which is sooner than the next 30 years. Basically the money comes from interest derived from loans taken against the value of other loans against homes where the absolute dredges of humanity live.

That's not even the whole of it. Good luck! Go long, anon I'm sure this time will be different! You'll be a billionaire! What color will your helicopter factory be?
>>
>>1737708
...everything you just said is objectively wrong and/or stupid. Also, having worked in fund management, a huge majority of mutual/hedge funds are exposed to REITs. Wtf man
>>
>>1737723
Huge majority of mutual/hedge funds went fucking bankrupt during the last recession.

I suggest you research what these REITs actually hold and consider to be assets and not just buy into them because some institutes did. They are complex entities that hold mostly debt. You want to buy debt in promises for some pennies in interest every 3 months?

Like I said, good luck! Enjoy your gains! You'll do really well I'm sure!
>>
>>1737564
MORL, CEFL, CLM, MRRL

Get those with robin hood and with the monthly dividends buy WHLR

Thank me later.
>>
>>1737743
funds can't go bankrupt. 1/10 for making me respond
>>
>>1737755
Okay they lose 95% of their value an stop paying dividends.

Yes and when a fund owns nothing but debt articles they can go bankrupt.
>>
>>1737761
Name an REIT mortgage fund that has had that happen
>>
>>1737765
http://seekingalpha.com/article/1548162-mortgage-reit-meltdown-i-told-you-so
>>
Nothing wrong with making money from mortgages but I wouldn't buy a geared fund. Basically, stay away from leveraged funds. If it was me, I would buy rental REITs in the form of an ETF. Rent will always be guaranteed money because everyone needs a place to live.
>>
>>1737696
watch big short or any other spoon feed trash
Thread posts: 21
Thread images: 3


[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y] [Search | Top | Home]

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/


If you need a post removed click on it's [Report] button and follow the instruction.
DMCA Content Takedown via dmca.com
All images are hosted on imgur.com.
If you like this website please support us by donating with Bitcoins at 16mKtbZiwW52BLkibtCr8jUg2KVUMTxVQ5
All trademarks and copyrights on this page are owned by their respective parties.
Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
This is a 4chan archive - all of the content originated from that site.
This means that RandomArchive shows their content, archived.
If you need information for a Poster - contact them.