As the Fed Steps Back From Mortgage Market, REITs Gear Up to Buy

Bloomberg, Sept. 21, 2017–Claire Boston
Many fund managers are fearful about the Federal Reserve shedding its massive $1.78 trillion mortgage bond portfolio, a step it plans to start next month. Some investors say it’s time to get greedy. Some mortgage bond fund managers known as real estate investment trusts have been raising cash at their fastest pace since 2013, giving them enough new capacity to buy more than $30 billion of the securities.