Here is a moment in time that illustrates what can happen in a panic. A severe dislocation played out this week in the mortgage REIT space. NY Mortgage Trust’s 7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (NYMTM) traded briefly as if the company were suddenly, instantly insolvent. The attached is a quick analysis of bankruptcy risk. Also, there was notable insider buying during this volatility the same day MBS spreads widened by 30 bps. This security’s volatility means it is speculative.

---

And here is the answer to the propaganda that ETF/ETNs are universally beneficial because they create liquidity for their underlying reference securities:

The ideas presented in this post do not constitute a recommendation to buy or sell any security.

Investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is not indicative of future price action.

You should be aware of the risks involved in stock investing, and you use the material contained herein at your own risk. Neither SIMONSCHASE.CO nor any of its contributors are responsible for any errors or omissions which may have occurred. The analysis, ratings, and/or recommendations made on this site do not provide, imply, or otherwise constitute a guarantee of performance.

SIMONSCHASE.CO posts may contain financial reports and economic analysis that embody a unique view of trends and opportunities. Accuracy and completeness cannot be guaranteed. Investors should be aware of the risks involved in stock investments and the possibility of financial loss. It should not be assumed that future results will be profitable or will equal past performance, real, indicated or implied.

The material on this website are provided for information purpose only. SIMONSCHASE.CO does not accept liability for your use of the website. The website is provided on an “as is” and “as available” basis, without any representations, warranties or conditions of any kind.