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  • Western Asset Mortgage Capital Nails The Quarter - Cautious On 18% [View article]
    Not so much commercial, but residential MBS without agency backing (non-agency) which I addressed in my conclusion, stating:
    "I like the increased credit exposure of the REIT (admittedly cautious on the addition of whole loans as they go down that road) in both RMBS and CMBS, and continue to believe the manager has the skills to invest and trade this sector (I have respect for WAMCO)."
    And in the body of the report:
    "As is apparent in the chart above (and why it is titled the way it is), WMC has been shifting its portfolio to a hybrid portfolio. The rationale being that there are more opportunities available in non-agency securities (RMBS or CMBS). "
    The funding costs I see potential issues with given the repo markets. The Fed holding rates lower is but one piece of the funding. Willingness to take collateral in repo is another. Recall back in '09 this bankrupted mREITs like thornburg and Anthracite in 2010. Just a thought.
    Aug 12 03:00 PM | Likes Like |Link to Comment
  • Western Asset Mortgage Capital Nails The Quarter - Cautious On 18% [View article]
    Oh, by the way, that is not since the IPO, it is since 8/18/13 when I started covering it. The IPO was May of 2012 and since then the return has been 10% annualized (reinvested) and -9% (price). Check the difference. It is not false, you just have to read it.
    Aug 12 02:47 PM | 1 Like Like |Link to Comment
  • Western Asset Mortgage Capital Nails The Quarter - Cautious On 18% [View article]
    I am long WMC (as stated). Also long TWO and NRF. This is not a sell rating, just raising the issue that the dividend needs to be covered. TWO and NRF are larger positions for me than WMC. I am long BAC from when they were "going out of business". Sold most of my shares. I don't chase, I analyze. Not really sure how the third line "Disclosure: The author is long WMC, TWO, NLY, NRF." created a mystery for you.
    Aug 12 02:41 PM | 2 Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    Winthrop Realty Trust (NYSE:FUR) ("Winthrop") announced that due to the approval by its shareholders of its plan of liquidation it has been advised that it will be dropped from the Russell Microcap Index (the "Index"). As noted in Winthrop's proxy statement with respect to the plan of liquidation, this was expected and the result of which is that certain institutional and other investors who invest in stocks included on the Index are required to divest of the Common Shares.
    Aug 7 03:20 PM | Likes Like |Link to Comment
  • Mortgage REITs - Like The Yield But Not The Volatility, Here Is An Alternative [View article]
    Px = price, CY = current yield, SY = stripped yield (stripping the accrued from the price), YTC = yield to call.
    Aug 5 07:11 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    FUR Investors holds 7.3% of the shares, management owns 2.5% (the majority by Michael L Ashner). I personally love the alignment of interests.
    Aug 5 05:01 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    From the proxy: "If our shareholders approve the plan of liquidation, pursuant to the documents governing our 9.25% Series D Cumulative Redeemable Preferred Shares, we will not be permitted to make any dividend payments or other distributions on account of our common shares until such time as our Series D Preferred Shares receive their liquidation preference. Accordingly, upon adoption of the plan of liquidation our current quarterly dividend of $0.1625 per common share will be suspended. The liquidation preference currently payable on our Series D Preferred Shares is $120,500,000 plus a 9.25% annual return thereon. "

    No dividends payable in the meantime.
    Aug 5 04:56 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    My "carefully chosen figures" were chosen by management. Conceptually, they know the value of their fund better than anyone else, correct? From the proxy "which is the most recent determination of net asset value, ranges from $13.79 to $15.79 per common share. Our board of trustees presently believes that based on current market conditions the amount ultimately distributable on account of each common share in connection with a liquidation would exceed $13.79, the low range of our most recently reported net asset value, after taking into account our costs, expenses and other obligations. " Where exactly are you getting $20.06 (which is higher than the value you are looking for over time?)?
    Aug 5 04:54 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    As they expressed continual frustration with the market refusing to see the value they had built, I would say they gave up (white flag). Had their NAV been realized, would they be going down this road?
    Aug 5 04:49 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    FURPrD 9.25% trades at $26.09 with a call date of 12/30/16. YTC is 7.68%. If it were par called on 12/30/15, YTC would be 6.68%. Not bad.
    Aug 5 04:46 PM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    I haven't seen a voluntary liquidation of a real property fund.
    Aug 5 08:47 AM | Likes Like |Link to Comment
  • Winthrop Realty Waves The White Flag - So Should Investors [View article]
    The preferred is, in my opinion, the only way to play Winthrop.
    Aug 5 08:29 AM | Likes Like |Link to Comment
  • Mortgage REITs - Like The Yield But Not The Volatility, Here Is An Alternative [View article]
    Quantum is a great site, I ponied up some $$ to support the site as there is a decent amount of work that goes into it. Many of the finance sites are finally getting some info, but the yield info is sketchy.
    Aug 5 12:59 AM | Likes Like |Link to Comment
  • Mortgage REITs - Like The Yield But Not The Volatility, Here Is An Alternative [View article]
    DoubleLine is a great firm to run those assets as well. mREITs, though are more of a business than a total return portfolio. They borrow funds to lever at a multiple (most CEFs will limit to 30% or so) and try to maximize income on the portfolio.
    Aug 5 12:58 AM | Likes Like |Link to Comment
  • Mortgage REITs - Like The Yield But Not The Volatility, Here Is An Alternative [View article]
    I did a study once, backtesting REM vs a pick from each subsector (as sampling if you will) that outperformed REM (and MORT). For quick exposure to the sector, the ETF is fine, but you can outperform by being finicky. REM and MORT are exposure to equities as well.
    Aug 5 12:55 AM | Likes Like |Link to Comment
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