Being Exposed Has Investors Singing Mortgage Blues

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.