Home / Daily Dose / Mortgage REITs Have Experienced Strongest Growth Since Recession The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago in Daily Dose, Featured, Market Studies, News Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Mortgage REITS (mREITs) have experienced strong growth in the decades since they debuted in the 1970s, but have enjoyed the greatest amount of growth in the years since the recession, according to a report from the Kroll Bond Ratings Agency (KBRA) released Wednesday.The mortgage portfolios and sector market capitalization of the 19 mREITs that debuted between 2008 and 2013 grew by more than 250 percent and 320 percent, respectively, according to KBRA.”This significant growth has been driven by a combination of factors including large amount of federal support for mortgage-backed securities (MBS) since the financial crisis coupled with strong investment demand for yield paying securities,” KBRA said in the report. “The US Treasury and the Federal Reserve took significant actions to stabilize the MBS market and to support MBS prices by purchasing $1.4 trillion of MBS between 2011 and 2013.”According to KBRA, another factor in the substantial growth of mREITs since the recession is the fact that they provide competitive yields for institutional and retail investors; the FTSE NAREIT Mortgage REITs Index was 11.25 percent as of June 30, 2015, compared to the S&P 500 of 2 percent. The strong dividend yields are achieved when mortgage REITs use leverage in order to multiply the interest spread earned between the interest paid to borrow and the interest earned on mortgage-backed securities, according to KBRA.Mortgage REIT portfolios have grown by more than $50 billion in equity and $7.8 billion in senior debt in both the residential and commercial financing sectors, driven by strong investor demand, according to KBRA. While the purchases and originations of residential MBS (both Agency and non-Agency MBS) has been responsible for much of that growth, there have been signs recently that commercial securities have contributed.Residential mREITs have been forced to find alternatives in order to maintain target dividends, due to the current environment of margin compression with high-yielding bonds replaced with lower-yielding securities while the cost of funding has stayed the same, according to KBRA. The Agency believes that mREITs have two choices in the situation – increasing leverage or diversification.Since most companies will likely face leverage limitations, which makes the second option, diversification is the “far more compelling” choice for traditional residential mREITs, according to KBRA. One company, Annaly Capital Management, diversified away from its Agency-only residential MBS business and into commercial real estate. Since focusing exclusively on residential MBS exposes portfolios to interest rate risk – the value of MBS in portfolios decreases as interest rates rise – venturing into commercial real estate should allow Annaly to offset challenges of rising interest rates. KBRA said it believes Annaly’s move of diversifying into commercial MBS will serve as a template for traditional mREITS that focus only on residential MBS.”The mortgage REIT sector experienced significant growth since the financial crisis, mainly driven by a low interest rate environment that favored its business model,” KBRA concluded in the report. “However, the current challenging environment of rising prepayments, margin compression and potential rising interest rates is forcing mREITs to evolve and expand from single-focus investment models.” Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Tagged with: Kroll Bond Ratings Agency Real Estate Investment Trusts REITs Residential Mortgage-backed securities Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Share Save Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Previous: Agencies Publish Annual List of Nonmetropolitan Distressed and Underserved Areas Next: DS News Webcast: Thursday 7/9/2015 Mortgage REITs Have Experienced Strongest Growth Since Recession Related Articles Kroll Bond Ratings Agency Real Estate Investment Trusts REITs Residential Mortgage-backed securities 2015-07-08 Brian Honea July 8, 2015 1,374 Views Print This Post
Press Association Chelsea, who agreed a 10-year kit deal with adidas worth in the region of £300million in June 2013, said the size of the deal with tyre manufacturer Yokohama Rubber was commercially sensitive. But it has been reported the five-year contract is worth £40million per season, second only in the Premier League to Manchester United’s deal with United States car manufacturer Chevrolet, which is worth a reported £47m per season. Yokohama Rubber replaces Korean electronic giants Samsung, which has sponsored Chelsea since 2005 in a deal which was re-signed in 2013 and worth a reported £18m. A Chelsea statement read: “Chelsea Football Club is delighted to unveil The Yokohama Rubber Company Ltd as our new official shirt partner in our largest-ever commercial deal. “This places Chelsea right at the top of European football, with one of the biggest shirt sponsorships ever signed. “This partnership with one of the world’s leading tyre manufacturers is for an initial term of five years and begins at the start of the 2015/16 season. “It will see the Yokohama brand appearing on all of our shirts from our first team to our youth teams.” The agreement was concluded on Thursday, four days before Chelsea play Tottenham in the Capital One Cup final. Yokohama Rubber chairman Tadanobu Nagumo flew to London from Tokyo to appear in an official launch photoshoot with Chelsea chairman Bruce Buck, manager Jose Mourinho and captain John Terry. Terry’s contract expires at the end of the season and his presence suggests his standing remains strong at the Blues, who are likely to extend his deal for a further year. Chelsea hope the shirt deal will help the club, owned by Russian billionaire Roman Abramovich, in their bid to be self-sufficient. Chelsea plan “to be one of Europe’s leading football clubs with a self-financing model which is fully compliant with the UEFA Financial Fair Play rules”, the statement added. Former Liverpool chief executive Christian Purslow was influential in the deal after joining Chelsea as head of global commercial activities last October. Buck said: “We believe that Yokohama will play a key role in helping us drive our global expansion in international markets such as the US, where they have operated with distinction for many years. “Also, of course, Chelsea having such an esteemed and historic Japanese company as our partner enables us to accelerate our development in their home market too.” Nagumo added: “This shirt partnership with Chelsea will give Yokohama an opportunity to showcase our company to a huge worldwide audience thanks to Chelsea’s ever-growing popularity. “We look forward to launching our iconic new Chelsea Yokohama shirt this summer.” Chelsea will likely make Japan a key future destination on pre-season tours, although the arrangements for the 2015 summer tour are understood to already be in place and do not include a trip there. Buck added: “I would also like to express my sincere gratitude to Samsung, with whom we have had a successful and rewarding relationship since 2005. “Chelsea has demonstrated through that 10-year partnership that we can play a critical role in helping our partners achieve their global growth objectives. We look forward to accomplishing similar success with Yokohama.” Chelsea have announced The Yokohama Rubber Company Ltd as their shirt sponsor from next season in a five-year deal which is the Premier League leaders’ largest commercial deal to date.
Michigan State —14,797Jason Chan/The Badger HeraldIowa — 13,835Haley Winckler/The Badger HeraldPurdue — 13,662Jason Chan/The Badger HeraldIllinois — 12,723Jason Chan/The Badger HeraldOhio State — 12,283Mark Batke/The LanternMichigan — 11,611Jason Chan/The Badger HeraldMinnesota — 10,706Emily Sachs/The Badger Herald The University of Wisconsin men’s basketball team had the highest average season attendance during the 2016-17 season among all Big Ten universites.With an average of 17,286 fans attending a game at the Kohl Center, Wisconsin ranked the sixth highest university overall, with Kentucky, Syracuse, Louisville, North Carolina and Creighton filling out the top five.The Badgers hosted 18 home games in the 2016-17 regular season, with 15 of those games ending in wins and three ending in a loss.The Big Ten was also one of the only divisions in which the average attendance at each game across all universities was greater than 11,000. The overall attendance for all Big Ten games was 1,628,102, which is the third year in a row that number has been above 1.6 million.The remainder of the Big Ten are as follows:Maryland —16,628Riley Steinbrenner/The Badger HeraldIndiana —16,363Ben Pierce/The Badger HeraldNebraska —15,427Jason Chan/The Badger Herald
Semir Stilić, the former national team player of BiH, has returned to his former club Wisla Krakow.The former Zeljeznicar’s player did not play since September last year, after which he left Cyprus APOEL.Although he had several offers, he decided to return to Wisla for which he performed from January 2014 until July 2015.Štilić played 52 times and scored 16 goals for Wisla.Except playing for Zeljeznicar, Wisla and APOEL, Štilić played in the Polish Lech, the Ukrainian Carpathia and Turkey’s Gaziantepspor.For the national team of BiH he played eight times.(Source: klix)
EAGLE GROVE — After nearly three years of planning and construction, an opening date is now set for the $240-million Prestage Farms pork processing plant in Wright County.Ron Prestage is CEO of the North Carolina-based company which is opening its newest facility near Eagle Grove.“It’s been a long journey to try to get to this point and now we’re just doing some final phases and a lot of cleaning and testing and organizing,” Prestage says. “We’re looking forward to getting it completed.”After many months of construction work on the large facility, the last duties before opening are being checked off the list.“Most of what’s being done is testing all the IT stuff, the computers and trying to coordinate the way all the equipment works and checking out motors,” Prestage says. “You have to do a phenomenal amount of cleaning before you do final installation of conveyor belts, for example.” Otherwise, he says, grit and dust could cause problems down the line.Progress is far enough along that a date is being set to open the facility.“We’re pretty comfortable right now that unless we get any unexpected surprises or whatever, that we’ll be ready to start the actual operations in the plant probably the first week of March,” Prestage says.A tentative start date is set for March 4th, though Prestage says they may only process one or two loads of hogs that day as everyone and everything is tested out.“March 2nd is when we’re planning on having a kind of open house and inviting local people, local politicians,” Prestage says, “the governor had expressed an interest in coming by, letting everybody get a tour all the way through the facility.”When the plant opens in March, there will be at least 300 to 400 workers employed at the facility. Its total workforce is expected to reach 922 by late this spring. The 922 workers is for the first shift only. It may be a year or two before it’s determined whether a second shift will be added.Eventually, the plant will slaughter 10,000 hogs per day, with half of those hogs coming from Prestage’s own barns. The other half will come from independent producers.