New Subsection, New Question

[Be Here Now]

One more thought on mortgage REITs. My portfolio owns CMO, which invests in ARMs (adjustable rate mortgages). At least in theory, as long rates rise, these should not lose market value, and at the same time should receive increased interest income. Thus increased short term borrowing costs should be offset by increased interest income, and NAV should not be negatively affected.

In theory. We will see.