Real Estate Investment Trust

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Mortgage REIT Insider: TED Spread Tackles Capstead 

Dec 12, 2008By

We knew it was coming, but the 465 basis point blow-out in October’s TED spread — the interest rates on interbank loans and short-term U.S. government debt — has come home to haunt one of the agency mortgage REITs. By failing to lock in the low spreads on its repurchase facilities, Capstead Mortgage [stock CMO][/stock] was forced to slice its fourth-quarter dividend by 34 percent, to just $0.36/share.

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