Two Harbors (TWO) is one of the three REITs with favorable fundamentals right now. Two Harbors is a hybrid REIT that will buy any type of mortgage if it thinks the securities have value. It can buy agency or non-agency paper, adjustable or fixed mortgages and invest in paper all up and down the credit scale. The company earns a “B” for its fundamentals, which could change to an “A” if the analysts would quit downgrading the estimates. TWO yields more than 12% and could be a great holding once the quant grade starts to improve.
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