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/biz/ - Business & Finance

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17927231 No.17927231 [Reply] [Original]

Everyone’s talking about buying oil, what about real estate?? They aren’t making more of it..

>> No.17927278

>>17927231
haha oil is finished

>> No.17927530

I'll tell you my story how I got justed I'm REITs this week

Monday
>MRRL automatically liquidated by UBS ETRACS
> -46% off my initial investment

Tuesday
>UBS ETRACS automatically liquidated MORL
> -66% my investment

Today
>REML crashes 89%!!
>No auto-redeem clause, but Credit Suisse news reserve the right to liquidate. So far no press release but it's under $2 per note now

These were 2x leveraged mREITs that buy mortgage backed securities and pay 20% dividends. You would think now is the perfect time to be holding MBS based ETNs, but turns out they hold a lot of hotels mortgages, which crashed the mREIT index due to no travel.

So lessons are: avoid the 2x jewage meme, and make sure the reit has no hotels. Something like RWX seems to have survived and pays 8% dividend normally, not leveraged.

>> No.17927679
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17927679

>>17927530
Ooof, I’m sorry to hear that anon! Are these long terms that you’ve held or just recently bought?? Did you end up selling or holding.. and I imagine these stocks you listed are good to buy now? No way any real estate company’s go bankrupt from this right??

>> No.17927936

>>17927679
MRRL I bought for $11 a long time ago.
Got like $3000 a year in dividends for a few years but sold Monday when it hit $5. There is a clause in the prospectus where they automatically redeem all notes when the iNAV goes below $5. On Friday it happened to 4 other ETRACS REIT ETNs (HOML, MLPQ, MLPZ, SHMB or something). MRRL went to $5.04. Now it is liquidated and getting delis Ted on 35 March.

MORL same thing but I didn't sell... Monday iNAV hit $3 and I sold at $2.50...

Everyone who held those switched to REML, which is basically the same asset category with 22% dividends. I had just 14 notes and didn't switch. Good thing because today it fell from $7 to $0.50. Look on stocktwits or yahoo finance comments section for the boomer slaughter comment fest.

TLDR; UBS ETRACS funds don't exist after this week anymore and I doubt they will come back. Credit Suisse will probably pull theirs too but haven't said yet.

>> No.17927990

>>17927231
$O and $STOR seem great right now. They got hammered today but dividends seem safe