Technical Research on INVESCO and Nationstar: Mortgage REITs Score New 52 Weeks High

  Technical Research on INVESCO and Nationstar: Mortgage REITs Score New 52
                                  Weeks High

  PR Newswire

  LONDON, February 14, 2013

LONDON, February 14, 2013 /PRNewswire/ --

Mortgage rates are declining and while it bodes well for the housing sector
and spurs home buying activities , it is not such a good news for REITs
investing in mortgage loan assets. Low mortgage interests generally translate
into narrower interest spreads for REITs , putting a strain on their margins.
However , Mortgage REITs are diversifying their holdings to neutralize the
impact. Despite these challenges , Mortgage REITs are offering good returns as
INVESCO Mortgage Capital Inc. (NYSE: IVR) recently made a new 52 weeks high
and delivered good quarterly results. Nationstar Mortgage Holdings Inc. (NYSE:
NSM) is also on an upward trajectory. The REIT looks to grow through
acquisitions and recently finalized the purchase of Equifax Settlement
business. The acquisition is expected to be accretive. StockCall has posted
free technical research reports on INVESCO Mortgage Capital Inc. and
Nationstar Mortgage Holdings Inc. , and these can be accessed by signing up at

Invesco Mortgage Posts Q4 Results

Invesco Mortgage Capital invests in mortgage loan assets. Like its peers, the
REIT is also struggling to cope with low interest rate mortgage environment.
The company is currently working to reduce its agency MBS holdings, though it
still makes up a large part of its portfolio. Invesco Mortgage reported its
fourth quarter earnings at 77 cents per share, surpassing estimates of 65
cents per share in income. It also offered 65 cents per unit in quarterly
dividend, further improving its investors' returns. Download the free report
on INVESCO Mortgage Capital Inc. upon registration at 

Invesco Mortgage remains a good buy. However, there are some pitfalls to
avoid. The company may face the negative impact of economic sequestration
which is likely to take place in March. The REIT is well diversified between
commercial and residential mortgages and thus has better cushion. It is also
working to curtail its general and administrative expenses. Invesco Mortgage
hold about two third of its assets in residential agency MBS and about three
quarter of its RMBS portfolio consists of 30-year fixed rate MBS. Invesco
Mortgage is looking to make a shift towards more lucrative commercial MBS.

Invesco Mortgage is a good investment, given its well diversified portfolio
and efficient management. The stock is in a bullish phase as it recently hit
its new 52-week high. The momentum is likely to continue. The REIT has better
multiples than most of its peers and offers a good investment avenue.

Nationstar Mortgage Acquires Equifax Settlement Unit

Nationstar Mortgage is trading on its 52-week high level and still has upside
potential. The REIT recently acquired settlement business from Equifax. The
acquisition is expected to be accretive and will help Nationstar Mortgage in
building a more wholesome and efficient business organization. It will also
help the vertical integration process as the REIT would not require engaging
third party services to carry out title search and appraisal work. It will
also provide a new revenue stream for Nationstar Mortgage. Nationstar Mortgage
Holdings Inc. technical report can be accessed for free by signing up at 

Nationstar Mortgage is looking to drive up its returns and margins. Its stock
offered 32 percent appreciation on a YTD basis to its investors. It is
expected to move up as Nationstar Mortgage draws synergistic returns from its
new acquisition of Equifax settlement business. It also recently inked a new
deal with KB Home. Under this deal, Nationstar Mortgage will provide mortgage
services to prospective home buyers. It is expected that the deal with help
the REIT is driving up its revenue.

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