Is Invesco Mortgage Capital Risky?

When assessing the risk of a mortgage real estate investment trust (mREIT), it pays to understand not only the risks involved in the assets themselves, but also to the amount of leverage (or borrowed money) the REIT employs. Portfolios full of government-guaranteed mortgage-backed securities (MBS) may look conservative at first glance, but dangers can lurk under the surface. Invesco Mortgage Capital (NYSE: IVR) had a near-death experience, and the company that emerged from the crisis was vastly different from the company that entered it.