3 Mortgage REIT Stocks For Investors Hunting Yield Beyond US Government Bonds
Norway’s $2.3b sovereign wealth fund just signalled a potential shake up in global bond markets by suggesting a large cut to government debt and a shift toward agency mortgage backed securities. That sort of move can change funding costs, influence yields and create new pockets of risk and reward. This article unpacks what that backdrop might mean and reveals 3 stocks directly exposed to this news.
The three stocks below are just a starting sample from this theme, and the full screen surfaced 7 more companies with equally focused agency MBS exposure and dividend stories that are not covered here. If you want to move beyond headlines and actually compare yields, balance sheets and business models side by side, head straight into the US Agency Mortgage REITs and Listed Agency MBS Specialists screener.
Ready Capital (RC)
Overview: Ready Capital is a US real estate finance REIT that focuses on lower to middle market commercial real estate and government backed small business lending, with meaningful exposure to mortgage backed securities tied to agency loan channels. That link to mortgage securitization and agency origination puts Ready Capital directly in the path of shifting demand for agency MBS, including from large asset allocators like Norway’s sovereign wealth fund.
Operations: Ready Capital reports US$61 million of revenue from Small Business Lending and a loss of US$373 million in its LMM Commercial Real Estate segment, with all reported activity based in the United States at a loss of US$273 million.
Market Cap: US$290 million
Ready Capital provides exposure to the intersection of commercial real estate credit, SBA lending and agency mortgage capital markets at a time when large global investors are openly tilting toward agency MBS. The company is working through a sizeable balance sheet clean up in its legacy commercial real estate book and has been loss making. It is also pushing further into capital light SBA lending, where it already ranks among the top US SBA 7(a) originators. With a very low P/B multiple, a minimal common dividend and a detailed plan to raise liquidity, reduce leverage and cut costs, the key question for investors is whether this reset can convert high forecast revenue growth into a more durable earnings and income story from here.
Ready Capital’s reset story hinges on whether today’s low P/B and loss making profile are masking a cleaner, higher quality lender in the making. Get the full picture in the analysis report for Ready Capital
Ellington Financial (EFC)
Overview: Ellington Financial is a hybrid mortgage REIT that acquires and manages a wide range of mortgage related assets, with a meaningful allocation to agency mortgage backed securities alongside non agency RMBS, commercial mortgage loans, consumer loans and reverse mortgages in the US.
Operations: Ellington Financial generates US$287 million of revenue from its Longbridge reverse mortgage business and US$217 million from its Investment Portfolio, partly offset by a loss of US$49 million in Corporate and Other.
Market Cap: US$1.7 billion
Ellington Financial provides exposure to the agency MBS theme that is attracting investors like Norway’s sovereign wealth fund, while also giving exposure to a diversified pool of mortgage credit, securitizations and a growing reverse mortgage platform through Longbridge. The company reports high margins and quarterly income that has recently covered its double digit yield. It relies entirely on external funding and has carried a high payout with weaker cash flow coverage, which can put pressure on the dividend if spreads or funding costs move in an unfavorable direction. For investors who want agency exposure with an active securitization engine rather than a plain vanilla bond fund, the main consideration is the trade off between income potential, leverage and earnings volatility.
Ellington Financial’s high yield and broad mortgage mix can look appealing; however, the real story is how that income compares with funding risk. Get the full context in the 3 key rewards and 4 important warning signs (2 are major!)
Angel Oak Mortgage REIT (AOMR)
Overview: Angel Oak Mortgage REIT is a US mortgage REIT that focuses on first lien nonqualified residential mortgage loans and related securitizations. This gives investors targeted exposure to non agency mortgage credit while still interacting closely with agency MBS markets through hedging, financing and bond structures.
Operations: Angel Oak Mortgage REIT reports US$36.4 million of revenue from acquiring, investing in and financing mortgage related assets, all generated in the United States.
Market Cap: US$192 million
Angel Oak Mortgage REIT offers a focused way to gain exposure to US mortgage credit at a time when large investors such as Norway’s sovereign wealth fund are signalling greater interest in mortgage backed securities instead of government bonds. The company relies on securitizations, warehouse funding and hedging, which can amplify returns when spreads are attractive but also leave earnings sensitive to wider funding costs and swings in book value. Recent results combine quarterly profits with a loss for the first half of 2026, and the double digit dividend is not fully covered by earnings or free cash flow. For investors who prioritize the income profile and the non agency angle within an agency linked theme, a central consideration is the level of comfort with that funding and dividend risk.
Angel Oak Mortgage REIT’s double digit yield and securitization engine could be masking a much tighter story around funding risk and dividend resilience. Review the full picture in the analysis report for Angel Oak Mortgage REIT
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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