The old saying ‘you are known by the friends you keep’ is coming back to haunt some investors as exposure to their friends coninues to punish mortgage stocks. A few million here and a few billion there – it is still a bad idea to expose yourself in public these days.
Anworth Mortgage Asset Corp’s shares fell 19 percent to close at $4.85 as investors widely punished mortgage-related stocks. And the shares of RAIT Financial Trust, whose investment portfolio includes $4.3 billion in mortgage loans, fell 23 percent on concerns over its exposure to bankrupt American Home Mortgage. On July 31, RAIT reported net equity exposure of about $95 million to American Home.