Give me reasons why I shouldn't buy MORL for that juicy 21% dividend yield

Dreamworx
Dreamworx

give me reasons why I shouldn't buy MORL for that juicy 21% dividend yield. REIT fund by UBS with 24 mid-large cap holdings

Other urls found in this thread:

seekingalpha.com/article/1548162-mortgage-reit-meltdown-i-told-you-so

5mileys
5mileys

leveraged ETN REIT

Wew fucking lad, this is definitely one for the risk takers

Apparently it only holds US-listed mortgages, are there any significant indicators of a housing bubble around cities ect? Im assuming you're going long on this right?

Ive never seen something like this pay out monthly dividends, or is that standard for REITs?

askme
askme

Anything with a 21% dividend yield should be viewed with extreme skepticism. Is their portfolio extremely risky? Will rising interest rates affect their solvency?

Good money typically does not get left on the table in today's market.

lostmypassword
lostmypassword

it's not unusual for REITs to pay monthly distributions.
Definitely would be a "buy and forget" strategy

Poker_Star
Poker_Star

Mortgage REIT.
Mortgage REIT.
Mortgage REIT.

If that doesn't sound like nuclear klaxon alarms when you read it, you might be too stupid to survive.

Deadlyinx
Deadlyinx

here are the holdings with corresponding weights

Methnerd
Methnerd

Why?

Illusionz
Illusionz

These all seem like normal companies wonder what the catch is. It has a lot of volatility because 2x leverage but not sure if that matters..

Garbage Can Lid
Garbage Can Lid

Right? 21% yield seems like a great deal given the holdings. It's all multi-billion dollar REITs

Inmate
Inmate

LOL, man you might want to do some research or read a fucking book or something.

Pic related it's your face in a couple months if you hold on to that toxic shit.

Playboyize
Playboyize

Why? Please explain why that's the case. It's an REIT fund that captured income from residential real estate

Burnblaze
Burnblaze

I can't be assed to explain in full. There is a reason major investors avoid these sorts of REITs. Basically people do not pay their mortgages, the REITS list their assets as loans they do not own, do not control and are held by banks for consumers that will 9 times out of 10 go bankrupt once the next recession hits which is sooner than the next 30 years. Basically the money comes from interest derived from loans taken against the value of other loans against homes where the absolute dredges of humanity live.

That's not even the whole of it. Good luck! Go long, user I'm sure this time will be different! You'll be a billionaire! What color will your helicopter factory be?

StonedTime
StonedTime

...everything you just said is objectively wrong and/or stupid. Also, having worked in fund management, a huge majority of mutual/hedge funds are exposed to REITs. Wtf man

whereismyname
whereismyname

Huge majority of mutual/hedge funds went fucking bankrupt during the last recession.

I suggest you research what these REITs actually hold and consider to be assets and not just buy into them because some institutes did. They are complex entities that hold mostly debt. You want to buy debt in promises for some pennies in interest every 3 months?

Like I said, good luck! Enjoy your gains! You'll do really well I'm sure!

Spazyfool
Spazyfool

MORL, CEFL, CLM, MRRL

Get those with robin hood and with the monthly dividends buy WHLR

Thank me later.

Garbage Can Lid
Garbage Can Lid

funds can't go bankrupt. 1/10 for making me respond

Boy_vs_Girl
Boy_vs_Girl

Okay they lose 95% of their value an stop paying dividends.

Yes and when a fund owns nothing but debt articles they can go bankrupt.

Soft_member
Soft_member

Name an REIT mortgage fund that has had that happen

Soft_member
Soft_member

seekingalpha.com/article/1548162-mortgage-reit-meltdown-i-told-you-so

Methnerd
Methnerd

Nothing wrong with making money from mortgages but I wouldn't buy a geared fund. Basically, stay away from leveraged funds. If it was me, I would buy rental REITs in the form of an ETF. Rent will always be guaranteed money because everyone needs a place to live.

WebTool
WebTool

watch big short or any other spoon feed trash