Much like most hedge fund managers with investment strategies in the home loan space, I am very ready to head home on this “Terrible Thursday.” Red is definitely the color of the day with the Dow losing almost 400 points to post the second worse day of the year.
A good friend of mine who is also a hedge fund manager tells me this is only the beginning of more bad days to come. I mean take two of the big examples of the week with
Luminent Mortgage Capital, a real estate investment trust (REIT), invests primarily in the United States agency and other single-family, adjustable-rate, and fixed rate mortgage-backed securities. It also invests in residential mortgage loans. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income tax purposes, provided that it distributes at least 90% of its REIT taxable income to its shareholders.
