REM: Favorable Macro Outlook For Mortgage REITs In 2026

Core Insights - Mortgage REITs have recently recovered after significant losses during the Fed rate hiking cycle of 2022-2023, benefiting from lower funding costs due to a 1% rate cut in 2024 and an additional 0.75% in 2025 [1] Group 1 - The recovery of mortgage REITs is attributed to reduced funding costs resulting from anticipated interest rate cuts [1] - The investment strategy includes a focus on REITs, preferred stocks, and high-yield bonds, indicating a long-term fundamental approach [1]