Friedman Billings Unloads $4.95 Billion in Mortgage-Backed Securities

Aug.21.07 | About: FBR & (FBRC)

Washington, D.C.-based REIT Friedman, Billings, Ramsey Group announced Monday it has sold approximately $4.95 billion of agency mortgage-backed securities at a loss of about $57 million. That loss includes $17 million that was part of FBR 21 08 2007 ChartAOCI (Accumulated Other Comprehensive Income) as of June 30, 2007 as a reduction of book value. The company is now left with an agency and AAA-rated mortgage-backed securities portfolio of approximately $1.2 billion. In a release, Friedman, Billings said it took the step to "reduce leverage during this period of disruption and uncertainty in the asset backed financing market and to better position its balance sheet to take advantage of future investment opportunities."

Sources: Press release, MarketWatch, Reuters
Commentary: Friedman Billings Ramsey: A Contrarian Dumpster DiveContrarian Mortgage Plays: Friedman, Billings, Ramsey GroupFriedman, Billings, Ramsey Group: Revival Expected
Stocks/ETFs to watch: FBR. Competitors: COWN, KBW. ETFs: REM

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