After increasing 80 basis points from year-end 2023 through 4/30/24 (from 3.88% to 4.68%), the 10-year treasury yield declined 18 basis points during May 2024 (from 4.68% to 4.50%). The yield curve continues to be a battleground with the short-end now discounting 0-3 fed rate cuts while the long-end buffets between a soft (no recession) and hard (recession) landing for the economy.
During May, increased total positions to 18 from 14 as it added 4 “special situations” with three residential mortgage REITs and one commercial mortgage REIT. Among the residential REITs, one company completed a debt restructuring that improved its capital structure allowing it to commence investing and a second company that continues to make progress in earning its current dividend. Among the commercial REITs, DVDN added one company invested in multifamily assets that is performing well and would seem to be in a position to increase its dividend.
For further details, please see our May 2024 Newsletter here.
