Arbor Realty: Upside Driven By Rate Cuts And Magnified By Short Squeeze

The Good Brigade Dear readers, Arbor Realty Trust (NYSE:ABR) is a rather special mortgage REIT with a $10+ billion portfolio of primarily short-term rehab-oriented bridge loans provided to owners of multifamily residential properties. In addition, the REIT also sells bundles of their originated loans to institutions such as Fannie Mae and Freddie Mac, and then manages these loans on their behalf for a fee (0.4% on average). This business model enables Arbor to benefit from significant synergies between the ...