Armour Residential REIT: A High-Yield But Volatile Idea For Income Investors

ARMOUR Residential REIT gets is prior hold ratings reaffirmed again, ahead of its upcoming earnings results later this month. Positive notes include an agency-backed MBS portfolio with growth, as well as positive ROE trends. Some riskier factors include volatile earnings and operating cash flow, high D/E, weak market sentiment, and limited upside forecasts.

Fed decisions on rates play a direct role in funding costs, as this REIT has considerable exposure to repo funding.