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Western Asset Mortgage: Are You Ready For The 20% Dividend Yield?

Western Asset Mortgage Capital Corporation (NYSE:WMC) is one of the harder mREITs to model. I decided to start working on modeling WMC and see what I could find. Investors buying into WMC should know that the company has complicated financial statements even for an mREIT. Fortunately, part of the complication is that the company is providing a meaningful amount of data. The difficulty, in my opinion, comes from the enormous volume of derivatives the mREIT is using. I believe management knows precisely what they are doing, but I also believe that very few retail investors are knowledgeable about the inner workings of their investments. I'm working to change that. I think the mREIT industry is often a very attractive place for investing and I think it is prudent for investors to educate themselves about the…