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CHICAGO-Deerfield Triarc Capital Corp. hopes to increase itsallocation of investments outside mortgage-backed securities tomore than 45% over the next 12 to 18 months. Those "alternativeassets" are expected to generate higher returns than theresidential or commercial mortgage-backed securities, companyofficials say during their earnings conference call this week.

The company's RMBS portfolio increased 15.6% to $8.1 billion inthe first quarter, compared to $820.2 million in alternativeinvestments, according to Deerfield Triarc Capital's earningsreport. However, the structured mortgage REIT has the ability totap $300 million from Wachovia Bank to increase investments insenior corporate debt, preferred stock and other investments. "Ithas the ability to do some real estate also," says chief financialofficer Richard Smith. "I anticipate that over time, we'll findsome real estate opportunities to take advantage of."