Operator
Greetings. Welcome to Ready Capital Corporation Fourth Quarter and Full-Year 2020 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.
At this time, I will now turn the conference over to Andrew Ahlborn, Chief Financial Officer. Mr. Ahlborn, you may now begin.
Andrew Ahlborn
Chief Financial Officer
Thank you, operator, and good morning, and thanks to those of you on the call for joining us this morning.
Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.
Mortgages, Not Assets: How the REM ETF Invests in Real Estate January 22, 2021
Covid-19 has changed the real estate investment trust (REIT) landscape, particularly commercial property and office buildings. One REIT to consider focuses on mortgages rather than physical property: the
“Mortgage real estate investment trusts (REITs) may sound intimidating, but their operating model is actually pretty simple,” a Motley Fool article noted. “These businesses borrow money at short-term lending rates and acquire assets that have a higher long-term yield. For mortgage REITs, we’re usually talking about mortgage-backed securities (MBSs). The difference between the yield from MBSs and the short-term borrowing rate is known as the net interest margin (NIM). The wider the NIM, the more money mortgage REITs make.”