Housing Gridlock Fuels 10% Yielding Two Harbors Preferreds

Housing gridlock continues with remarkably low transaction volume. Would-be sellers want to hang on to their cheap existing mortgages, so very few people are selling. Realtors are losing business and homebuyers are frustrated by the lack of suitable homes on the market. The gridlock is not fun for many participants in the housing market, but it benefits Two Harbors Investment Corp. (NYSE:TWO). With the increased stability from longer duration assets, we believe the preferreds are opportunistic sources of hi ...