Nomura Instinet analyst Matthew Howlett started Two Harbors Investment with a Neutral rating and $18 price target. The analyst expects a "transitional" 2019 for the company as the CYS Investments acquisition is integrated. He also initiated coverage of the U.S. Mortgage REITs industry with a positive outlook. The environment for levered mortgage-based operating models is the best it's been since the Taper Tantrum, Howlett tells investors in a research note. He thinks the space is poised to attract interest from "yield-starved investors amid a low, range-bound interest rate environment and expected yield curve steepening."