Find Real Estate Agents and Homes for Sale


Real Estate News --> South Carolina News

Columbia real estate a seller’s market


“Buying season has already started and we haven’t even reached the end of the quarter,” said Karen Yip of Yip Premier Real Estate ... chief executive of South Carolina Realtors. In the Midlands, unincorporated Lexington County continues to ...


Archived Story

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world For Customers Bloomberg Anywhere Remote LoginSoftware UpdatesManage Products and Account Information Support Americas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000 Company Bloomberg LondonAboutCareersDiversity and InclusionPhilanthropy and EngagementSustainabilityTech Communications Press AnnouncementsPress Contacts Follow FacebookTwitterLinkedInInstagram Products Bloomberg TerminalExecution and Order ManagementData and ContentFinancial Data ManagementIntegration and DistributionBloomberg Tradebook Industry Products Bloomberg LawBloomberg TaxBloomberg GovernmentBloomberg EnvironmentBloomberg New Energy Finance Media Bloomberg MarketsBloomberg TechnologyBloomberg PursuitsBloomberg PoliticsBloomberg OpinionBloomberg BusinessweekBloomberg Live ConferencesBloomberg AppsBloomberg RadioBloomberg TelevisionNews Bureaus Media Services Bloomberg Media DistributionAdvertising Company Bloomberg LondonAboutCareersDiversity and InclusionPhilanthropy and EngagementSustainabilityTech Communications Press AnnouncementsPress Contacts Follow FacebookTwitterLinkedInInstagram Products Bloomberg TerminalExecution and Order ManagementData and ContentFinancial Data ManagementIntegration and DistributionBloomberg Tradebook Industry Products Bloomberg LawBloomberg TaxBloomberg GovernmentBloomberg EnvironmentBloomberg New Energy Finance Media Bloomberg MarketsBloomberg TechnologyBloomberg PursuitsBloomberg PoliticsBloomberg OpinionBloomberg BusinessweekBloomberg Live ConferencesBloomberg AppsBloomberg RadioBloomberg TelevisionNews Bureaus Media Services Bloomberg Media DistributionAdvertising Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world For Customers Bloomberg Anywhere Remote LoginSoftware UpdatesManage Contracts and Orders Support Americas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000 {"headline":"REITs Bolster Mortgages With Share Sale ‘Surge’: Credit Markets","url":"https://www.bloomberg.com/news/articles/2011-03-02/mortgage-reit-surge-adds-50-billion-of-bond-buying-fuel-credit-markets","twitterText":"REITs Bolster Mortgages With Share Sale ‘Surge’: Credit Markets","twitterHandle":"business"} MENU About The Company Bloomberg London Homepage Markets Stocks Currencies Fixed Income ETFs Commodities Rates + Bonds Economics Magazine Benchmark Watchlist Economic Calendar Tech U.S Global Startups Bloomberg Technology TV Gadgets With Gurman Digital Defense Studio 1.0 Focus On: Infrastructure Pursuits Cars & Bikes Style & Grooming Spend Watches & Gadgets Food & Drinks Travel Real Estate Art & Design Brilliant Ideas Politics Global Risk Briefing All Signs Point to Big Democratic Wins in 2018 Trump Takes Credit for Killing Hundreds of Regulations That Were Already Dead How China’s Top Leaders Came Into Power How the Populist Right Is Redrawing the Map of Europe Opinion View Gadfly Businessweek Latest Issue Debrief Podcast Subscribe More Crypto Hyperdrive Climate Changed Focus On: Women Graphics Billionaires Personal Finance Inspire GO Sponsored Content Send Tips Sign In Sign In Subscribe window._fence = (function(d, s, l, id, cdn, v) { var fs, st, lt, pf, ft, f = window._fence || {}; if (d.getElementById(id)) return f; fs = d.scripts[0]; st = d.createElement(s); lt = d.createElement(l); pf = d.createElement(l); ft = d.createElement(l); pf.rel = "dns-prefetch"; pf.href = cdn; st.id = id; st.async = true; st.src = cdn + "/s3/fence/" + v + "/app.bundle.js"; lt.rel = "stylesheet"; lt.href = cdn + "/s3/fence/" + v + "/styles.css"; ft.rel = "stylesheet"; ft.href = "https://assets.bwbx.io/font-service/css/BWHaasGrotesk-55Roman-Web,BWHaasGrotesk-75Bold-Web,Bloomberg/font-face.css"; f.q = []; f.ready = function(cb) { f.q.push(cb); }; d.head.appendChild(pf); d.head.appendChild(lt); d.head.appendChild(ft); fs.parentNode.insertBefore(st, fs); return f; }(document, "script", "link", "fence-snippet", "//assets.bwbx.io", "v4")); window._fence.ready(function() { window._fence .enableRender({"hideContentConfig":{"exist":".fence-body","hide":"*:not(p):not(a):not(em):not(h1):not(h2):not(h3):not(h4), p:nth-of-type(n+2) ~ *","hideContainerDirective":"EXIST","inlineContainerDirective":"EXIST"}}) .addArticle("LHE7T31A74E901", false); }); {"id":"LHE7T31A74E901","contentType":"archived","contentTags":[{"id":"north-carolina","type":"Location","directScore":0.7306002928257687,"derivedScore":0.7306002928257687},{"id":"virginia","type":"Location","directScore":0.7320644216691069,"derivedScore":0.7320644216691069},{"id":"new-york","type":"Location","directScore":0.7681045162743552,"derivedScore":0.7681045162743552},{"id":"investment-management","type":"Topic","directScore":0.6398243045387995,"derivedScore":0.6398243045387995},{"id":"job-creation","type":"Topic","directScore":0.7782407928820814,"derivedScore":0.7782407928820814},{"id":"banking","type":"Topic","directScore":0.7873634418290348,"derivedScore":0.7873634418290348},{"id":"bonds","type":"Topic","directScore":0.8133798851221984,"derivedScore":6.2438734626032115},{"id":"earnings","type":"Topic","directScore":0.8240792882081316,"derivedScore":0.8240792882081316},{"id":"taxes","type":"Topic","directScore":0.8293726771032774,"derivedScore":0.8293726771032774},{"id":"investing","type":"Topic","directScore":0.9004392386530015,"derivedScore":0.9004392386530015},{"id":"investment-trusts","type":"Topic","directScore":0.9691406689942561,"derivedScore":0.9691406689942561},{"id":"real-estate","type":"Topic","directScore":0.970492172541953,"derivedScore":0.970492172541953},{"id":"interest-rates","type":"Topic","directScore":2.4873296542403427,"derivedScore":2.4873296542403427},{"id":"junk-bonds","type":"Topic","directScore":4.335961256898299,"derivedScore":4.335961256898299},{"id":"money-manager","type":"Topic","directScore":4.474291516499606,"derivedScore":4.474291516499606},{"id":"debt","type":"Topic","directScore":4.8875981951796375,"derivedScore":4.8875981951796375},{"id":"mortgages","type":"Topic","directScore":5.230343757430141,"derivedScore":5.230343757430141},{"id":"london","type":"City","directScore":0.6264218943574726,"derivedScore":0.6264218943574726},{"id":"chicago","type":"City","directScore":0.8866989525847505,"derivedScore":0.8866989525847505},{"id":"federal-reserve","type":"Organization","directScore":5.758306115553554,"derivedScore":5.758306115553554},{"id":"2499931","type":"Person","directScore":0.21871832413560086,"derivedScore":0.21871832413560086},{"id":"7333335","type":"Person","directScore":0.4455456695573825,"derivedScore":0.4455456695573825},{"id":"CME:US","type":"Company","directScore":0.08660885234823741,"derivedScore":0.08660885234823741},{"id":"STT:US","type":"Company","directScore":0.6996283365243834,"derivedScore":0.6996283365243834},{"id":"1217886D:US","type":"Company","directScore":0.7486203401283928,"derivedScore":0.7486203401283928},{"id":"FNMA:US","type":"Company","directScore":0.7820700529338889,"derivedScore":0.7820700529338889},{"id":"FHN:US","type":"Company","directScore":0.8812929383939633,"derivedScore":0.8812929383939633},{"id":"FMCC:US","type":"Company","directScore":0.9332131996846491,"derivedScore":0.9332131996846491},{"id":"JPM:US","type":"Company","directScore":1.0159927919810787,"derivedScore":1.0159927919810787},{"id":"AGNC:US","type":"Company","directScore":1.0342380898749859,"derivedScore":1.0342380898749859},{"id":"MSCI:US","type":"Company","directScore":1.4109697037954725,"derivedScore":1.4109697037954725},{"id":"NLY:US","type":"Company","directScore":2.35048992003604,"derivedScore":2.35048992003604},{"id":"CSGN:SW","type":"Company","directScore":3.53905594974409,"derivedScore":3.53905594974409},{"id":"monetary-policy","type":"Topic","directScore":0,"derivedScore":6.035268496343398},{"id":"central-bankers","type":"Topic","directScore":0,"derivedScore":5.758306115553554},{"id":"CH","type":"Country","directScore":0,"derivedScore":3.53905594974409},{"id":"technology","type":"Classification","directScore":0,"derivedScore":1.4109697037954725},{"id":"markets","type":"Classification","directScore":0,"derivedScore":10.754352643316558},{"id":"finance","type":"Classification","directScore":0,"derivedScore":4.935836910142201},{"id":"fixed-income","type":"Topic","directScore":0,"derivedScore":10.339970154339573},{"id":"UK","type":"Country","directScore":0,"derivedScore":0.6264218943574726},{"id":"GB","type":"Country","directScore":0,"derivedScore":0.6264218943574726},{"id":"US","type":"Country","directScore":0,"derivedScore":3.7130450010039615},{"id":"US","type":"Region","directScore":0,"derivedScore":3.7130450010039615},{"id":"personal-finance","type":"Topic","directScore":0,"derivedScore":6},{"id":"infrastructure","type":"Topic","directScore":0,"derivedScore":0.970492172541953},{"id":"Europe","type":"Region","directScore":0,"derivedScore":3.594495083132018}]} {"url":"2011-03-02/mortgage-reit-surge-adds-50-billion-of-bond-buying-fuel-credit-markets","adCode":"markets/article","targeting":{"suid":"LHE7T31A74E901","page":"articlejav","currentResource":"Story|LHE7T31A74E901","ni":["ABCDO","ABS","ACEXCLUDE","ADDL","AGE","ALLFEA","ALLFND","ALLSTATES","ALLTOP","ANON","BESTTOP","BGOVBILLGO","BGOVCODES","BIZNEWS","BNCOL","BNK","BON","BONDWIRES","BONTOP","BONTOPZ2","BONTOPZ3","BONTOPZ4","BOSTOP","BOSTOPZ2","BRNEWS","BUSINESS","BZNEWS","CACT","CBM","CDO","CECO","CEN","CM","CMDKEY","CMO","CMTOP","CMTOPZ1","CMW","COEVNT","COLUMNS","COR","CORPFIN","COS","CREDIT","CREDITKEY","CST","DC","DEALTOP","DEALTOPZ3","DEBTKEY","DEVECO","DLQ","DRV","ECO","ECOINDIC","ECOSTAT","EQUITYKEY","EXCLUSIVE","FED","FIALL","FIASST","FIN","FINMIN","FINNEWS","FISUB","FIXTURE","FND","FNDTOP","FNDTOPZ3","FXKEY","G10MEMB","G7ECOS","G7MEMB","GBN","GETOP","GETOPZ3","GLOBALMACR","GOV","GOVMISC","GRNEWS","HOM","INDUSTRIAL","INDUSTRIES","INF","INSTFIN","INTERBANK","KEYCRE","KRNEWS","KRTOP","KRTOPZ2","LIBOR","LOANS","LOANTOP","LOANTOPZ3","MAJOR","MARKETS","MBS","MD","MISC","MKTTOP","MMK","MOR","MOSTREAD","MSCINAMER","MSCIWORLD","MTGEKEY","MUNTTOP","MUNTTOPZ3","NEWSTK","NOB","NONAGENCY","NORTHAM","NRGKEY","ONWEB","PADD1","PADDIST","PLACE","POLIRISK","RATESKEY","READ","REGIONFILT","REIT","REL","RELTOP","RELTOPZ3","RMBS","SCR","SECURED","SPREGIONS","SRCRANK1","STK","STRFIN","SUBORD","SWAPS","TIMECO","TIMENI","TNM","TOP","TOPBIZMKT","TRE","UPDATE","US","USB","USECO","USGOV","USMA","USSE","USTOP","USTOPZ3","VA","WORLD","WRP","WWTOP","WWTOPBIZ","WWTOPZ3","YBN"],"tagr":[],"kwl":["biz_bankofamerica_exclusion","biz_goldman_q2","biz_capone","biz_testing123","biz_exxonmobil","biz_ishares","biz_cboe","biz_pitney","biz_ubsbannedlist","biz_accentureindia1","biz_Samsung","biz_Comcast","biz_wellsfargosept","biz_bofasept","biz_pnc","biz_googlelist","biz_googlelisttwo","biz_googlelisthree","biz_synchrony","biz_technologykeywords","biz_citi","biz_vices","biz_autocompetitors","biz_trowe","biz_zurichsmartmatch","biz_atrocity","biz_nomurakeywords","biz_etrade","biz_bp1","biz_bp2","biz_bp3","biz_bp4","biz_schwab","biz_fidelity","biz_tda","biz_ibm3","biz_dit_terrorism","biz_kornferry","biz_fti","biz_lexus2","biz_singlecountry","biz_singlecountry2","biz_dun_bradstreet","biz_BMW","biz_citi1","biz_att1","biz_mobkoimandslist","biz_tdameritrade","biz_boeing","biz_att2","biz_att3","biz_att6","biz_att7","biz_facebook1","biz_facebook2","biz_msft","biz_BMWRecall","biz_junctiondigital","biz_citibank2","biz_skymobkoi","biz_Fidelity_investopedia","biz_hsbcpb","biz_masia2","biz_mobkoibelvedere","biz_jpmorgan","biz_ishares2","biz_ishares3"],"tickers":[{"id":"CSGN:SW","score":3.53905594974409}]},"disableAds":false} REITs Bolster Mortgages With Share Sale ‘Surge’: Credit Markets Jody Shenn {"year":"numeric","month":"long","day":"numeric","hour":"numeric","minute":"numeric","timeZoneName":"short"} March 2, 2011, 1:48 PM EST Investors are pouring the most money in at least five years into publicly traded funds that buy mortgage assets, bolstering the market for the debt and reducing borrowing costs for homeowners. Annaly Capital Management Incand American Capital Agency Corpled real estate investment trusts that have raised almost $6 billion in share sales in the past three monthsJPMorgan Chase & Coestimated in a Feb26 report that this “surge” of equity investment may fuel purchases of as much as $50 billion of additional government-backed mortgage bonds, based on how much they typically borrow. Investors are offering more capital to so-called REITs, with dividends averaging 13 percent, because their borrowing costs are being held at close to zero by the Federal Reserve while they buy higher yielding, mostly U.S.-guaranteed securitiesOne measure of the potential profits from such investing reached the highest in 10 months in February. “The Fed is the key,” said Walt Schmidt, a mortgage strategist in Chicago at FTN Financial, the brokerage unit of First Horizon National Corp“The game is only really up regarding REIT and bank purchases if the Fed has to tighten” liquidity, he saidBenchmark interest rates are set at a range of zero to 0.25 percent, where they’ve been since 2008. Using LeverageThe REITs’ growth shows how the central bank is helping to restrain home buyers’ financing costs even after it completed purchasing $1.25 trillion of mortgage bonds a year agoThe companies, which don’t pay taxes as long as they distribute most of their earnings, use leverage to multiply potential returns. They can now earn 3.95 percentage points more than the cost of borrowing for three months against certain mortgage bonds through so-called repurchase agreements, or reposThat spread reached 4.21 percentage points last month. Fed Chairman Ben SBernanke told the Senate Banking Committee yesterday that he wants to see “a sustained period of stronger job creation,” signaling the Fed plans to keep borrowing costs low. Elsewhere in credit markets, corporations planned at least $3.1 billion in dollar-denominated bond sales, MSCI Incset the interest rate it will pay on a $1.125 billion term loan and Guggenheim Partners LLC’s Anne Walsh predicted junk bonds will continue to rally. Issuance IncreaseDominion Resources Inc., the electric utility that serves Virginia and North Carolina, plans to sell 3-year notes that may yield 70 basis points more than similar-maturity Treasuries, and 10-year debt that may pay a 110 basis-point spread, according to a person familiar with the offering who asked not to be identified because terms aren’t set. State Street Corp., the second biggest money manager for institutions, may sell 5- and 10-year notes in a benchmark offering, according to a person familiar with that transactionThe 5-year debt may pay a spread of 80 basis points to 85 basis points, and the 10-year notes may yield 95 basis points to 100 basis points more than benchmarks, said the person, who also declined to be identified because terms aren’t set. MSCI, the developer of investment indexes and analytics, set the interest rate it will pay on a $1.125 billion term loan it’s seeking to reprice existing debt. The loan due March 2017 will pay 2.75 percentage points more than the London interbank offered rate, according to data compiled by BloombergThe lending benchmark will have a 1 percent floor. High-Yield OutlookAt Bloomberg Link Insurance Portfolio Strategies conference in New York, Guggenheim’s Walsh said her firm’s investment outlook on high-yield corporate debt runs counter to that of some competitors. “We’re not falling into the bond-bubble thinking that a lot of the other investment management parts of the industry believe,” said Walsh, a managing director at Guggenheim, which oversees more than $100 billion“We’re contrary to a lot of other investment managers in high-yield corporates as well as asset-backed securities.” The three-month period since the end of November has been the busiest for mortgage REIT share sales since at least 2005, almost double the $3.1 billion issued in the period through January 2008, the previous high, according to SNL Financial, a Charlottesville, Virginia-based financial information and research providerSome of the REITs invest in bonds and loans without government backing. Agency MortgagesThe largest mortgage REITs held about $115 billion of the $5.2 trillion of agency mortgage securities guaranteed by government-supported Fannie Mae and Freddie Mac or U.S.-owned Ginnie Mae, Credit Suisse Group AG estimated in a January reportU.Scommercial banks owned $1.09 trillion of the debt as of Feb16, up from $994 billion on June 30, according to Fed data. The average rate on a typical 30-year fixed-rate mortgage climbed last week to 4.95 percent from a record low of 4.17 percent in early November, according to Freddie MacThe difference between the cost and 10-year Treasury yields has averaged about 1.4 percentage point this year, compared with a 1.8 percentage point gap over five years. Annaly, the largest mortgage REIT with $83 billion of assets at year-end, has returned 74 percent in the past two years, including reinvested dividendsThe New York-based company’s dividend yield is now 14 percent, Bloomberg data show. Increases in yields on longer-term bonds since September as the Fed succeeded in boosting inflation expectations have created an even “steeper yield curve,” contributing to demand for Annaly’s shares that allowed the REIT to sell $3 billion in two offerings this year, said Wellington JDenahan-Norris, the firm’s chief investment officer. Seeking Return“Among the menu of options investors have to look at for returns, this sector of the market provides a relatively attractive risk-adjusted return profile,” she said in a telephone interview. Three-month repo loans used by mortgage REITs cost 0.28 percent, after falling from 5.5 percent in 2007 as the Fed cut its benchmark rate to support the economy during the worst financial crisis since the Great Depression, according to data from ICAP Plc, the world’s largest inter-dealer broker. After reaching the lowest level since 2008, the gap between the financing rates and yields on Fannie Mae’s 30-year mortgage securities that trade closest to face value has widened from 291 basis points on Oct7 to 395 basis points, according to Bloomberg and ICAP dataThe spread has expanded from 17 basis points in 2006. American CapitalAmerican Capital Agency, the Bethesda, Maryland-based REIT with $14.5 billion of assets as of Dec31, raised $753 million in a January share sale after a $229.5 million offering in December, its third of the year. REITs are also drawing investors because there’s less uncertainty about how quickly homeowners will repay their loans, and they’re employing hedges to guard against higher interest rates, said Gary Kain, American Capital’s chief investment officer. “The REIT space is much better hedged than it was in 2003 and 2004,” he said“We feel confident that the space can continue making money even in the absence of a steep yield curve.” ‘Quite Manageable’Higher short-term rates would reduce REITs’ investment margins, though would be “quite manageable” until the Fed raises them by “hundreds” of basis points, said Bose George, an equity analyst at Keefe Bruyette & Woods in New YorkGeorge said he is recommending investors buy shares of most mortgage REITs because the economy is probably too weak for such increases soon. Further gains in long-term rates may also damage REITs by decreasing the value of current holdings, and potentially force asset sales to help meet margin calls on their financing, he saidWhile reduced homeowner refinancing in the wake of higher loan rates last year helped REITs, “you get to a certain point and no one can refi,” George said. Traders assign a 67.4 percent probability to the Fed holding rates steady through its December meeting, and a 23.9 percent chance of an increase of just 25 basis points, according to futures on the CME Group Incexchange. “People are buying agency MBS REITs due to the high dividend yields with little consideration for the risk/reward proposition,” said Scott Simon, head of mortgage bonds at Newport Beach, California-based Pacific Investment Management Co., manager of the world’s biggest bond fund. The Fed is likely to unwind its unconventional purchases of Treasuries, agency debt and mortgage bonds, a strategy termed quantitative easing, before it raises short-term borrowing costs, Annaly’s Denahan-Norris saidHer company, like many REITs, has entered into interest-rate swaps to mitigate the effects of increases in rates, she said. “We leave money on the table quarter in and quarter out to try to protect the portfolio when short rates rise,” she said. To continue reading this article you must be a Bloomberg Professional Service Subscriber. Read this article on the Terminal Request a demo to learn more If you believe that you may have received this message in error please let us know. You might like: Tesla Asks for Model 3 Factory Volunteers to Prove ‘Haters’ Wrong How a Billionaire Crypto King Built the No1 Exchange in Just 8 Months Amazon Loses $53 Billion in Market Value, Becoming FAANG's Biggest Loser Nissan, Renault in Talks to Merge, Create New Company Tesla Plunges Again as Questions Swirl Around Fatal Accident {"contentId":"LHE7T31A74E901","position":"box","dimensions":{"small_desktop":[[300,600],[300,250],[1,1]],"large_desktop":[[300,600],[300,250],[1,1]]},"positionIncrement":1,"targeting":{"position":"box1","positionIncrement":1,"url":"/news/articles/2011-03-02/mortgage-reit-surge-adds-50-billion-of-bond-buying-fuel-credit-markets"},"containerId":"box-DW4Qc8p"} Terms of Service Trademarks Privacy Policy

Trending South Carolina News:


  • Stability returning to home sales market, official says
  • This South Carolina House Comes with a Creepy Mystery Tenant
  • Qatar to showcase economy and culture in South Carolina
  • Compass Academy officials agree to receivership for school
  • Greystar, AXA IM – Real Assets and GIP buy Spanish student housing provider
  • Abbeville, SC Homes For Sale & Real Estate
  • 1991 Wofford grad, anthropologist speaks at 2016 graduation
  • Todd Kohlhepp: What we know about SC kidnapping suspect
  • South Carolina 5th Congressional District Election: Final Voting Results & Analysis
  • Mo-peds subject to traffic regulations in bill sent to governor
  • University of South Carolina Beaufort pitcher makes decision of a lifetime
  • Home sales up 0.7% in South Carolina
  • Economy trumps social issues in conservative SC
  • S.C. Sheriffs Behaving Badly
  • Tightening of licensing requirements sought in wake of charges against island real estate agent
  • Lawsuit that threatened sale of Kiawah developer is settled
  • Qatar finance group eyes investing in South Carolina
  • Developers ordered to pay $55 million to Mount Pleasant property owner's association
  • HB 2, election, uptown office market big topics at InterFace conference
  • Vacancy down in Columbia’s office, industrial real estate markets