Mortgage REITs Rise to Reverse Tumble on Financing Concern

Real estate investment trusts that buy U.S. mortgage debt rose, erasing losses that had reached the steepest since December 2008 amid concern that their main source of financing could be roiled by European bank woes.

Mortgage REITs including Annaly Capital Management Inc. and American Capital Agency Corp. rose 1 percent at 4:15 p.m. in New York, after earlier falling as much as 6 percent, according to a Bloomberg index tracking 33 shares. The stocks swung to gains as U.S. stocks rallied amid speculation that European Union officials are examining how to recapitalize the region’s banks. Losses over the past two days among the REITs had reached as much as 11.1 percent, the biggest drop in almost three years.