As the Federal Reserve has started making moves, mortgage-related shares are beginning to rise.
As economic activity grinds to a halt, coronavirus-related panic continues to rise.
“On Friday, in the first open market operation with a new commercial mortgage-backed securities (CMBS) program, the New York Fed bought $1.04 billion of the $1.83 billion that was offered in a sign of eagerness by dealers to offload. The Fed said it would buy $3 billion in agency CMBS next week in similar operations.”
Data suggests that these actions have stopped a plummet in Mortgage Real Estate Investment Trusts (REIT).
There may be more downturn in the near future as tenants are likely to stop paying rent in April and May in response to the coronavirus and unemployment.