Replies to post #53 on Western Asset Mortgage Capital Corp. (WMC)

[bar1080]

WMC is off about 19% since your first purchase on April 10. During that period the broad market has slightly risen.

Averaging down with mREITs is very risky since many have gone out of business during the sector's 50 year history. Their main business is making bets on the direction of interest rates and TRYing to hedge some of the risk. I know little about WMC's structure but I'm quite familiar with other mREITs.

When things get bad, some mREITs will do highly dilutive rights offerings.

I'd urge you to study the history of the mREIt sector. But WMC's poor performance over the past 6 months should tell you to be leery.