FYI: Teasing a 12% dividend yield from a 3¼% mortgage portfolio is no easy feat. AGNC Investment , a mortgage real estate investment trust, exists to give it a try.
Otto von Bismarck famously compared the making of laws to the manufacture of sausage. He might as easily have compared the making of laws to the manufacture of yield. The less you know about such dark processes, the Iron Chancellor remarked, the happier you’ll be.
But a little knowledge is essential for the peace of mind of the conscientious income-seeker. Nobody guarantees that 12% yield. It depends on the skill of the manager, the shape of the yield curve, the perceived direction of Federal Reserve policy, and the propensity of encumbered American homeowners to refinance their mortgages.
Regards,
Ted
https://www.barrons.com/articles/yield-mortgage-backed-securities-51552661534?mod=hp_DAY_3
