AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the "Company") announced today that it is providing updates on several matters pertaining to the Company.
NEW YORK, NY / ACCESSWIRE / March 31, 2020 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of AG Mortgage Investment Trust, Inc. ("AG Mortgage" or "the Company") (MITT). The investigation concerns whether AG Mortgage and certain of its officers and/or directors have violated federal securities laws. On March 27, 2020, AG Mortgage issued a press release disclosing that "[s]ince March 23, 2020, the Company and several of its subsidiaries have received notifications from several financing counterparties of alleged events of default under their financing agreements, and of certain of those counterparties' intentions to accelerate the Company's and such subsidiaries' performance obligations under the relevant agreements."
(Bloomberg Opinion) -- The rent is too high. And that’s causing consternation across Wall Street desks still traumatized by the 2008 financial crisis.As the days go by in an unprecedented shutdown of the U.S. economy to slow the coronavirus outbreak, any amount of rent looks increasingly difficult to cover for a wide swath of Americans, from recently fired service workers to local small-business owners. Unfortunately for those most affected, these payments can’t simply be wiped out — at least, not without dire repercussions. My Bloomberg Opinion colleague Noah Smith wrote a column this week arguing that people need a break on all sorts of debts. But when it comes to rent, there’s pretty much no way around people eventually paying what they owe, ideally with the help of the U.S. government, or else risk “turning a health crisis into a banking crisis.”This, more or less, is the catastrophic “domino effect” that real-estate investor Tom Barrack, chief executive officer of Colony Capital Inc., warned about this week. Simply put, if commercial tenants don’t pay rent because of a lack of cash, then property owners might be squeezed and default on their mortgage payments. The same goes for homeowners. That could bring the problem squarely onto the balance sheets of large U.S. banks, which will suffer steep losses on their loans.At first, it might have seemed as if Barrack was simply talking his book. But as more details emerged about the carnage across the $16 trillion U.S. mortgage market, it’s clear that the complex web of financial obligations tied to real estate could again be the flashpoint that leads to a financial crisis without some sort of intervention.Part of the reason that mortgages are again veering into crisis mode is because the modern market has so many moving parts. My Bloomberg Opinion colleague Matt Levine laid it out in a five-part list, which you can (and should) read here. Suffice it to say, if money is being lent twice-over in the repo market, the players are highly leveraged and vulnerable to an unexpected shock. The coronavirus outbreak certainly qualifies as such — some 47,000 U.S. chain stores temporary closed in the span of a week, Bloomberg News reported Tuesday. The median estimate for initial jobless claims on Thursday is 1.5 million, up from 281,000 previously.This mortgage-market meltdown is happening largely because everyone in the money chain is anxious and wants to cash out at the same time. But it also comes back to rent. It’s anyone’s guess when the American economy will be up and running again and what sort of assistance the federal government will provide to those companies forced to close and those individuals suddenly out of a job. It’s hard to blame banks for not wanting to wait around for answers and instead issue margin calls on mortgage real estate investment trusts.Those jitters caused emergency sales from the REITs, including relatively safe (and more liquid) agency debt. But that can’t last forever. On Tuesday, Invesco Mortgage Capital Inc. said it could longer fund margin calls, following in the footsteps of AG Mortgage Investment Trust Inc., which said it failed to meet some margin calls on Friday and doesn’t expect to meet them in the future, and TPG RE Finance Trust Inc., which is seeking flexibility from lenders. They’re almost certainly not the only ones.For now, there’s only so much the Federal Reserve can do to address these strains. It announced open-ended purchases of both U.S. Treasuries and agency mortgage-backed securities on Monday. The central bank is wasting no time flexing its muscle: It’s targeting $250 billion of agency MBS purchases this week after buying $67 billion last week. The previous record was $33 billion in March 2009, according to Morgan Stanley. Many observers are confident that the Fed’s “whatever it takes” model will restore order to the agency MBS market in no time.For non-agency securities, there’s not yet a dedicated lifeline. My Bloomberg Opinion colleague Marcus Ashworth suggests these assets may be the next order of business for the Fed. It’s hard to argue with that, given the central bank’s already unprecedented moves into the corporate and municipal markets.Before the Fed launches yet another emergency facility, though, central bankers should assess the fiscal stimulus package from Congress. If lawmakers provide enough relief for the most affected Americans to get through these next few months and cover their rent, lease and mortgage payments, it might be enough to prevent the first domino from falling in Barrack’s example.The coronavirus outbreak has suddenly halted cash flows of all kinds. Washington needs to keep the spigot open.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service ("Moody's") has assigned definitive ratings to seven classes of notes issued by GCAT 2019-RPL1 Trust ("GCAT 2019-RPL1"), which are backed by one pool of primarily re-performing residential mortgage loans. As of the cut-off date of July 31, 2019, the collateral pool is comprised of 1,622 first and junior lien mortgage loans, with a weighted average (WA) updated primary borrower FICO score of 643, a WA current loan-to-value Ratio (LTV) for the first liens of 84.9% and a total unpaid balance of $270,702,302. Fay Servicing, LLC ("Fay") will be the primary servicer and will not advance any principal or interest on the delinquent loans.
AG Mortgage Investment Trust, Inc. (NYSE:MITT), which is in the mortgage reits business, and is based in United...
AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the "Company") announced today that in recent weeks, due to the turmoil in the financial markets resulting from the global pandemic of the COVID-19 virus, the Company and its subsidiaries have received an unusually high number of margin calls from financing counterparties. Through Friday March 20, 2020, the Company timely met or is in the process of meeting all margin calls received. Although the Company’s satisfaction of certain margin calls received on Friday March 20, 2020 missed the wire deadline, on Friday evening the Company notified the affected counterparties that the Company will fulfill such margin call payments on Monday March 23, 2020.
Q3 2019 AG Mortgage Investment Trust Inc Earnings Call
For investors, the challenge is trying to figure out how much value would be left in the worst-case scenario—if the vehicles liquidate.
KlaymanToskes ("KT"), http://www.klaymantoskes.com, announces an investigation on behalf of investors who sustained losses in excess of $100,000 from the recommended purchase of AG Mortgage Investment Trust, Inc. (NYSE:MITT) ("MITT") a Real Estate Investment Trust ("REIT"). MITT closed at 16.52 on February 21, 2020, prior to the significant market event that was precipitated by COVID-19. Today, MITT trades at 1.92, or more than 85% lower than its market value on February 21, 2020. This investment may have been marketed and sold to investors who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks by their full-service brokerage firm or their financial advisor.
If you're interested in AG Mortgage Investment Trust, Inc. (NYSE:MITT), then you might want to consider its beta (a...
AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the "Company") announced today that it is providing updates on several matters pertaining to the Company.
AG Mortgage Investment Trust on Wednesday sought a court order to prevent Royal Bank of Canada (RBC) from auctioning off nearly $11 million of commercial mortgage-backed securities that serve as collateral for defacto loans to AG, according to a court filing. RBC, Canada's biggest lender, and other banks have taken advantage of illiquidity due to a market selloff to mark down these assets and "to trigger widespread margin calls," AG said in a request for a temporary restraining order and injunction filed in the U.S. Southern New York District Court.
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One esoteric corner of the financial markets is coming under stress again, just as it did after the Financial Crisis, demonstrating just how big the disruption to financial markets has been.
Pomerantz LLP is investigating claims on behalf of investors of AG Mortgage Investment Trust, Inc. (“AG Mortgage” or the “Company”) (NYSE: MITT). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. The investigation concerns whether AG Mortgage and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
If you're interested in AG Mortgage Investment Trust, Inc. (NYSE:MITT), then you might want to consider its beta (a...
AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the "Company") announced today the following updates with respect to its business operations.
Q4 2019 AG Mortgage Investment Trust Inc Earnings Call