The Case for Mortgage REITs in a Rising Rate Environment May 11, 2021 The looming threat of rising interest rates doesn’t have to be daunting when ETF investors embrace the phenomenon with funds like the If a fixed income investor wants maximum yield on safe haven Treasury notes, they have to go as far out on the yield curve as possible. This means leveraging duration risk to the hilt. Of course, there are alternatives. One is to seek alternate income sources like mortgage real estate investment trust (REITs). “If you’re looking for inflation-crushing income, give the mortgage REIT industry a good look,” a Kiplinger’s article said. “Unlike equity REITs, which are generally landlords with brick-and-mortar properties, mortgage REITs own leveraged portfolios of mortgages, mortgage-backed securities and other mortgage-related investments.”