Capstead Mortgage Corporation operates as a real estate investment trust in the United States. The company primarily invests in financial assets, specifically residential adjustable-rate mortgage securities issued and guaranteed by government-sponsored entities. It also invests in credit-sensitive commercial real estate-related assets, including subordinate commercial real estate loans. Capstead Mortgage has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes atleast 90% of its REIT taxable income to its shareholders. The company was founded in 1985 and is based in Dallas, Texas.