Arlington Asset Investment

U.S. equity markets extended their rebound to a third-straight week as benchmark interest rates dipped on economic data and corporate earnings reports showing a more distinct cooldown in economic activity. Gaining for a third-straight week and extending its rebound to nearly 10% since dipping into "correction territory" at the end of October, the S&P 500 gained another 2.4% this week. Lifted by the retreat in benchmark interest rates, real estate equities have roared back to life over the past three weeks. Equity REITs and Mortgage REITs each gained another 4.7%. » Mehr auf seekingalpha.com

Rising interest rates pose challenges for many REITs by impacting debt rollovers and investor alternatives. Higher rates will add around $2 billion to the national debt over the next decade. Even more if they create a recession. Apartment construction is declining, affecting rental unit supply and potentially leading to increased rental rates. Pretty obvious when you think about it. » Mehr auf seekingalpha.com

Arlington Asset Investment Corp. invests in mortgage-backed assets and has not paid dividends since the start of the COVID pandemic. Arlington has been able to generate consistent operating income and has a debt-to-equity ratio of 2.67. Ellington Financial LLC has entered into a merger agreement to acquire Arlington, offering a premium to Arlington shareholders and expecting to benefit from Arlington's assets. » Mehr auf seekingalpha.com