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Benanke posts

Bernanke: Market for securities backed by commercial mortgages 'completely shut down'

Posted Jul 23rd 2009 1:40PM by Connie Madon (RSS feed)
Filed under: Bad News, Economic Data, Federal Reserve, Financial Crisis

Listen up! Listen up to what Fed Chairman Bernanke has to say about commercial real estate. He said that the market for securities backed by commercial mortgages had "completely shut down." This is a serious if not devastating statement. Can we infer that the market for credit default swaps (CDSs) has shut down? If so we are at the brink of a new financial situation.

Mr Bernanke also stated that continued deterioration in commercial property with defaults rising sharply would present a "difficult" challenge for the economy. Prices for commercial real estate have fallen 35% since the market's peak.

Continue reading Bernanke: Market for securities backed by commercial mortgages 'completely shut down'

Chasing Value: Annaly Capital Mgmt -- from watch list to buy

Posted Dec 17th 2008 2:58PM by Sheldon Liber (RSS feed)
Filed under: Money and Finance Today, Bargain Stocks, Chasing Value™, Stocks to Buy, Housing, Federal Reserve, Best Stocks for 2008, Annaly Capital Management (NLY)

It was only a couple of days ago I posted Serious Money: What's on your watch list? suggesting you had to be ready because you never know when an opportunity might arise to acquire a value proposition.

Then yesterday the market was up but sluggish in anticipation of Federal Reserve chairman Ben Bernanke possibly announcing a cut in the overnight rate, so I pulled the trigger on the one stock I could get at the right right price that was the most interest rate sensitive.

Annaly Capital Management (NYSE: NLY) is one of the stocks mentioned in Fortune Magazines "Ten Promising Stocks for 2009" and is currently paying almost a 15% yield at Friday's closing price of $14.92. The company borrows money at short term rates and only invests in long-term Federally backed mortgages. They have avoided subprime loans and derivatives entirely.

I bought NLY for $14.80 per share locking in at an actual yield of 15.01%. Sure enough, Bernanke slashed rates to the bone letting the rate float from 0% to .5% and the DJIA jumped finishing the day up several hundred points, while Annally closed at $15.84, one of my big gainers for the day.

Continue reading Chasing Value: Annaly Capital Mgmt -- from watch list to buy