Capstead Mortgage Corp., a mortgage real estate investment trust, announced last week that its chairman and chief executive officer, Ronn K. Lytle, exercised options to buy 125,000 shares of its common stock for total consideration of $1.7 million. The move brings his holdings to 383,396 shares.Capstead's stock has plung-ed more than 25% since October as interest rates have fallen. The company said late last year that low interest rates could affect future increases in dividend payments.
Capstead makes its money from servicing mortgage loans and invests in mortgage-backed securities. Both businesses tend to suffer from increased prepayments in a low-rate environment.