Replies to post #66 on Western Asset Mortgage Capital Corp. (WMC)

[bar1080]

You don't even know what WMC does! It owns mortgage backed securities. It owns NO REAL ESTATE.

"WMC is in real estate with solid properties so I'm not concerned about much downside. I think the lowest it will go is $9, in which case, I'll back up the truck."

[bar1080]

There's no $9 floor when you realize how leveraged this mREIT is... about 7 times. It's not one of the worst but these can perform terribly under certain conditions. Some mREITs have failed. Poof! Zero!

" I think the lowest it will go is $9, in which case, I'll back up the truck."

I've only seen two or three IHUBers over the years who understand mREITs. Point it, those fat divs come with huge risks.