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Shares of mortgage real estate investment trusts such as Annaly Capital Management (NYSE:NLY), American Capital Agency Corp. (NASDAQ:AGNC), and Hatteras Financial Corp. (NYSE:HTS), among others, slid on the day as the sector revalued itself perhaps for significant dividend cuts. The Federal Reserve’s mortgage-backed securities purchases are destroying net interest margins. Unless a big jump in leverage is seen, returns must drop.
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