Two Classes Of Mortgage REITs

There are 7 agency mortgage REITs. Three of them have demonstrated that they are substantially better than the other 4. It feels like a system where investors would generally be rewarded very well by a system that could: Buy the first 3 Fund the position with proceeds from shorting the other 4. Of course, there are difficulties to this. If the investor had to supply the capital to cover their short position and to fund their long position, it would completely break the model. The system would have earned ...