MITT
- AG Mortgage Investment Trust, Inc.
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Overview
Company Summary
AG Mortgage Investment Trust, Inc. (MITT) is a real estate investment trust (REIT) that primarily focuses on investing in and managing a portfolio of residential mortgage-backed securities (RMBS) and other mortgage-related assets. MITT operates as a hybrid mortgage REIT, meaning they engage in both agency and non-agency mortgage investments.
As an agency mortgage REIT, MITT invests in residential mortgage loans that are guaranteed or issued by government-sponsored enterprises like Fannie Mae, Freddie Mac, or Ginnie Mae. These agency-backed mortgages typically offer more security, as they are guaranteed by the government, which mitigates credit risk to some extent.
Additionally, MITT also invests in non-agency residential mortgage loans, which are generally not backed by the government. These non-agency mortgages may include prime and non-prime residential loans, as well as commercial mortgage-backed securities. Non-agency loans generally have a higher risk but also the potential for higher returns.
The company earns income from the interest and principal payments on its mortgage-backed securities investments. MITT collects regular payments from the homeowners whose mortgages it holds and earns income from the difference between the interest rates on its assets and the cost of its borrowings.
MITT's goal is to generate a stable income for its investors through interest payments and dividends by actively managing its portfolio of mortgage investments. To minimize interest rate risks and maintain a balance between risk and reward, MITT may employ various hedging strategies and tactics.
Overall, MITT aims to provide shareholders with attractive risk-adjusted returns by investing in residential mortgage-related assets and maximizing income through the management of its mortgage portfolio.