I submitted an article on MTGE. The gist is that it is predominately agency. My guess is that the mix will shift over time as the manager spots opps in non-agency. Currently - it looks and feels a lot like AGNC. So beware of doubling down effectively on AGNC....
"The Company amortizes or accretes premiums and discounts associated with purchases of agency securities into interest income over the estimated life of such securities based on actual and projected CPRs, using the effective yield method. The weighted average cost basis of the investment portfolio was 104.7% as of December 31, 2011; therefore, slower actual and projected prepayments can have a meaningful positive impact, while faster actual or projected prepayments can have a meaningful negative impact, on the Company's asset yields."
Why I Am Avoiding American Capital Agency [View article]
I am avoiding the agency mortgage REIT space. I sold my positions in NLY (http://seekingalpha.co...) and AGNC. I am waiting for better prices (below book) or more info on prepayments.
A Look Inside American Capital Agency [View article]
What Makes AGNC Different? [View article]
What Makes AGNC Different? [View article]
What Makes AGNC Different? [View article]
Full Disclosure: I am long DBL.
What Makes AGNC Different? [View article]
American Capital Agency: A Booming Big Dividend REIT [View article]
American Capital Agency Is Still A Buy After Dividend Cut [View article]
I suggest reading the full press release.
"The Company amortizes or accretes premiums and discounts associated with purchases of agency securities into interest income over the estimated life of such securities based on actual and projected CPRs, using the effective yield method. The weighted average cost basis of the investment portfolio was 104.7% as of December 31, 2011; therefore, slower actual and projected prepayments can have a meaningful positive impact, while faster actual or projected prepayments can have a meaningful negative impact, on the Company's asset yields."
Why I Am Avoiding American Capital Agency [View article]