12% Yield Comes With Risk, The Market Messed Up On Capstead Mortgage – Seeking Alpha

This research report was produced by The REIT Forum with assistance from Big Dog Investments.

That market is back to failing.

We recently purchased Capstead Mortgage Trust (CMO) when the market decided to let them trade at a staggering discount:

Source: The REIT Forum

Prices from when we made the trade

The common shares were rallying hard for most of the sector:

Source: Seeking Alpha

You couldn’t see CMO on that chart. You would need to scroll down pretty far:

Source: Seeking Alpha

Given the dramatic difference in price movements, we decided to take on the additional risk by allocating into the common shares of CMO. That’s an important distinction from the majority