Wunderlich Initiates Coverage Of 10 Mortgage REITs, 5 Get Buy Ratings (AGNC, NLY, HTS, CYS, TWO)

Wunderlich Securities has initiated coverage on 10 mortgage REITs. Five of the companies have received Buy ratings. The analysts wrote, "we believe investors can arbitrage both FOMC accommodation and the policy initiatives of the Obama Administration through these stocks because re-stabilizing the housing finance market is dependent on offering a value proposition in the secondary mortgage market that enhances the soundness of regulated financial institutions." The firm's top picks are 1. American Capital Agency AGNC, Annaly Capital Management NLY, Hatteras Financial HTS, Cypress Sharpbridge CYS, and Two Harbors TWO. All of these stocks were initiated at Buy at Wunderlich.