No. of Recommendations: 0
I have about 2% of my money in mortgage REITs. They use alot of debt. $12 debt to $1 assets is normal for NLY. If anything goes wrong you can be wiped out. The also write Enron style annual statements so you are really working off the reputation of the management.

The problem with bonds is the fact that you might never be paid back. This is also true of gov bonds as they can devalue their currencies, as the US seems to be doing now.
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