AG Mortgage Investment Trust (proposed MITT) is scheduling a $250 million IPO with a market capitalization of $268 million for Friday April 29, 2011.

CONCLUSION

Leveraged mortgage REITS can pay 14%.

MITT is a newly formed mortgage REIT intending to focus on non-agency backed (non-government guaranteed) mortgages. On the IPO MITT will sell for about book value and will invest IPO proceeds according to a leveraged strategy.

There are a number of existing investment vehicles with the same strategy that already have significant dividend yields.

For example, ranked with largest market capitalization first: Annaly Capital (NLY) 14.1%; Chimera Inv (CIM) 14.2%; American Cap Agency (AGNC) 19.4%; Hatteras Financial (HTS) 14.5%; Invesco Mortgage (IVR) 16.9%. source: Google Finance

Over the past year the above group’s stock prices increased on average 2%.

Mortgage REITS in this sector borrow money at low rates to invest in higher yielding mortgage packages. When short term rates increase, dividend yields can be expected to decline for the mortgage REIT sector.

BUSINESS

AG Mortgage Investment Trust, Inc. is a newly formed Maryland corporation that will invest in, acquire and manage a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which we refer to as our target assets.

MITT INVBSTMENT STRATEGY

Over time, MITT expects its portfolio will focus on residential mortgage-backed securities, or RMBS, that are not issued or guaranteed by a U.S. government agency or a U.S. government-sponsored entity, or non-Agency RMBS.

Non-Agency RMBS investments are expected to include fixed- and floating-rate securities, including investment grade (AAA through BBB) and non investment grade (BB and below). MITT expectx to include mortgage pass-through securities and may include collateralized mortgage obligations, or CMOs. Over time, we expect to transition our portfolio from Agency RMBS to non-Agency RMBS.

EXPECTS TO USE LEVERAGE

"There is no limitation on the amount of leverage we may utilize." S-1 Page 11

"We may utilize derivative financial instruments (or hedging instruments), including interest rate swap agreements and interest rate cap agreements, in an effort to hedge the interest rate risk associated with the financing of our portfolio." S-1 page 8

"We expect, initially, that we may deploy, on a debt-to-equity basis, up to 6 to 9 times leverage on our Agency RMBS assets. With respect to our non-Agency RMBS and CMBS assets, we expect to deploy 2 to 3 times leverage, except in conjunction with securitizations which provide term financings that may be available to us depending upon market conditions. For these asset classes on an aggregate debt-to-equity basis, we currently do not expect to exceed, on a debt-to-equity basis, a 4.5-to-1 leverage ratio." S-1 page 9

S-1 filing http://www.sec.gov/Archives/edgar/data/1514281/000119312511100286/ds11a.htm

INVESTMENT ADVISOR

Angelo, Gordon & Co. is a privately-held registered investment advisor dedicated to alternative investing. The firm was founded in 1988 and currently manages approximately $23 billion. Angelo, Gordon has 230 employees.

UES OF IPO PROCEEDS

$250 million, allocated to cash or short term securities until invested

AG Mortgage Investment Trust (MITT)	MITT, C, 6					Post IPO shares: 13mm
New mortgage REIT						IPO Mkt
New York, NY						Cap (mm)
						$268
						@$20
	IPO Mrkt	Price /	Price /	Price /	Annual
Year ended Dec 31, 2010	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
AG Mortgage Trust MITT	$268	n/a	n/a	1.0	1.0	93%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	1	1	6
Valuation Ratios	IPO Mrkt	Price /	Price /	Price /	Annual
	Cap (mm)	Sales	Earnings	BookValue	div yield
AG Mortgage Trust MITT	$268	n/a	n/a	1.0	not stated
Similar mortgage REITS
Year ended Dec 31, 2010
Annaly Capital (NLY)	$14,160	5.3	11	1.4	14.1%
Chimera Inv (CIM)	$4,060	1.5	8	1.1	14.2%
American Cap Agency AGNC	$3,590	1.3	12	2.3	19.4%
Hatteras Financial (HTS)	$1,630	0.6	10	1.4	14.5%
Invesco Mortgage (IVR)	$1,580	0.6	16	1.6	16.9%
Price change for similar mortagage REITS
	4/25/10	4/24/11	% change
Annaly Capital (NLY)	$16.96	$17.61	4%
Chimera Inv (CIM)	$4.14	$3.95	-5%
American Cap Agency AGNC	$27.20	$28.83	6%
Hatteras Financial (HTS)	$26.61	$28.00	5%
Invesco Mortgage (IVR)	$21.69	$21.96	1%
Average gain			2%
Source: Google Finance