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Scott Kennedy

 
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  • Fifth Street Finance's Upcoming Fiscal Q4 2014 Net Asset Value Projection
     • Fri, Nov. 21 FSC 42 Comments

    Summary

    • I am projecting FSC will report a minor decrease in NAV during the fiscal fourth quarter of 2014 (NAV per share projection is stated within the article).
    • A majority of the projected minor decrease in NAV is due to anticipated depreciation within several of FSC’s portfolio companies.
    • However, I am also projecting FSC will generate an economic return of 2.10% for the fiscal fourth quarter of 2014.
    • I believe FSC will begin to increase the company’s NII and net ICTI beginning in the fiscal first quarter of 2015 due to its recently formed and expanding JV partnership.
    • My buy, sell, or hold recommendation for FSC is stated in the “Conclusions Drawn” section of the article.
  • American Capital Agency's Dividend Projection For November - December 2014
    Editors' Pick • Wed, Nov. 12 AGNC 52 Comments

    Summary

    • AGNC reported ERTI and net dollar roll income available to common shareholders of $237 million (or $0.67 per common share) for the third quarter of 2014.
    • AGNC had a quarterly ERTI and net dollar roll underpayment (overpayment) of $8 million and a quarterly payout ratio of 97%.
    • My exact AGNC dividend per share projections for November 2014 and December 2014 are stated in the “Conclusions Drawn” section of the article.
    • My exact MTGE and NLY dividend per share projections for the fourth quarter of 2014 are stated near the end of the article.
    • My current buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the “Conclusions Drawn” section of the article.
  • Assessing Prospect Capital's Results For Fiscal Q1 2015
    Mon, Nov. 10 PSEC 73 Comments

    Summary

    • On 11/6/2014, PSEC reported results for the fiscal first quarter of 2015.
    • PSEC reported NII of $0.275 per share and earnings of $0.245 per share.
    • In this article, I will summarize my previous account projections versus actual results.
    • I believe there are several important topics to discuss from the quarter which includes PSEC’s proposed “spinoffs”, recent equity offerings, and dividends.
    • My buy, sell, or hold recommendation for PSEC is stated in the “Conclusions Drawn” paragraph.
  • Prospect Capital Corp.'s Upcoming Fiscal Q1 2015 Net Asset Value Projection
    Mon, Nov. 3 PSEC 80 Comments

    Summary

    • I am projecting PSEC will report a minor decrease in NAV during the fiscal first quarter of 2015 (NAV per share projection is stated within the article).
    • A majority of the projected minor decrease in NAV during the fiscal first quarter of 2015 is due to PSEC distributing quarterly dividends in excess of NII.
    • However, I am also projecting PSEC will generate an economic return of 2.39% for the fiscal first quarter of 2015.
    • Compared to the prior quarter, valuation losses on PSEC’s investment portfolio should be less severe.
    • My buy, sell, or hold recommendation for PSEC is stated in the “Conclusions Drawn” section of the article.
  • Assessing American Capital Mortgage Investment Corp.'s Results For Q3 2014
    Fri, Oct. 31 MTGE 12 Comments

    Summary

    • On 10/29/2014, MTGE reported results for the third quarter of 2014.
    • MTGE reported net income (loss) of $0.14 per common share and a BV of $22.24 per common share as of 9/30/2014.
    • In this article, I will provide my thoughts about MTGE’s MBS portfolio and hedging coverage ratio as of 9/30/2014.
    • I will also provide my thoughts in regards to MTGE’s MSR, RCS.
    • Along with my current buy, sell, or hold recommendation, the “Conclusions Drawn” section of the article will discuss how the results impact MTGE’s dividend.
  • Update: American Capital Agency's Earnings For Q3 2014 And My Thoughts On The Results
    Tue, Oct. 28 AGNC 58 Comments

    Summary

    • On 10/27/2014, AGNC reported results for the third quarter of 2014.
    • AGNC reported a comprehensive income (loss) of ($0.07) per common share and a BV of $25.54 per common share as of 9/30/2014.
    • In this update article, I will summarize my previous account projections versus actual results.
    • I will also provide my thoughts about AGNC's MBS portfolio and hedging coverage ratio as of 9/30/2014.
    • Along with my current buy, sell, or hold recommendation, the "Conclusions Drawn" paragraph will discuss how the results impact AGNC's dividend.
  • American Capital Agency's Upcoming Q3 2014 Book Value Projection
    Editors' Pick • Thu, Oct. 23 AGNC 43 Comments

    Summary

    • I am projecting AGNC will report a modest decrease in quarterly BV and generate a minor economic loss for the third quarter of 2014.
    • The projected modest decrease in quarterly BV is mainly due to the heightened spread/basis risk that occurred during the third quarter of 2014.
    • My projection for AGNC's book value per common share as of 9/30/2014 and 10/17/2014 is stated in the "Conclusions Drawn" section of the article.
    • My projection for MTGE's and NLY's book value per common share as of 9/30/2014 is stated just above the "Conclusions Drawn" section of the article.
    • My buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the "Conclusions Drawn" section of the article.
  • American Capital Agency's Upcoming Q3 2014 Income Statement Projection - Part 3
    Editors' Pick • Mon, Oct. 20 AGNC 24 Comments

    Summary

    • Most 15- and 30-year fixed-rate agency MBS coupons saw a minor to modest price decrease during the third quarter of 2014.
    • As such, I am projecting AGNC will report a net unrealized gain (loss) on available-for-sale securities of ($400) million for the third quarter of 2014.
    • I am projecting AGNC will report a net unrealized gain (loss) on interest rate swaps (upon reclassification to interest expense) of $37 million for the third quarter of 2014.
    • My projection for AGNC’s comprehensive income (loss) amount for the third quarter of 2014 is stated in the “Conclusions Drawn” section of the article.
    • A future article, which will be published prior to AGNC’s quarterly press release, will project the company’s BV as of 9/30/2014 and 10/17/2014.
  • American Capital Agency Corp.'s Upcoming Q3 2014 Income Statement Projection - Part 2
    Thu, Oct. 16 AGNC 21 Comments

    Summary

    • I am projecting AGNC will report a net gain (loss) on sale of derivative instruments and other securities of ($65) million for the third quarter of 2014.
    • I am projecting AGNC will report a management fees expense of $31 million for the third quarter of 2014.
    • My projection for AGNC's net income (loss) and earnings per share amounts for the third quarter of 2014 are stated in the "Conclusions Drawn" section of the article.
    • Part 3 of the article will project the remaining accounts that make up AGNC's other comprehensive income (loss) and total comprehensive income (loss) amounts.
  • American Capital Agency Corp.'s Upcoming Q3 2014 Income Statement Projection - Part 1
    Mon, Oct. 13 AGNC 13 Comments

    Summary

    • I am projecting AGNC will report interest income of $375 million for the third quarter of 2014.
    • I am projecting AGNC will report interest expense of $100 million for the third quarter of 2014.
    • I am projecting AGNC will report a net gain (loss) on sale of agency securities of $50 million for the third quarter of 2014.
    • Part 2 of the article will project the remaining accounts that make up AGNC's net income (loss) amount (mainly the quarterly valuation changes in the company’s derivative portfolio).
    • Part 3 of the article will project the remaining accounts that make up AGNC's other comprehensive income (loss) and total comprehensive income (loss) amounts.
  • Comparing Annaly Capital Management's BV, Dividend, Risk And Valuation To Several mREIT Peers - Part 2
    Editors' Pick • Tue, Oct. 7 NLY 56 Comments

    Summary

    • As I previously projected, NLY and most of the company’s mREIT peers had declared a stable dividend per share rate for the third quarter of 2014.
    • Two mREIT peers who did not have a stable per share rate were CYS with a modest dividend decrease and WMC with a minor dividend increase (percentage wise).
    • NLY continued to have yield percentages modestly below the agency mREIT average, thus inherently lowering the risk of dividend reductions throughout the remainder of 2014 going into 2015.
    • AGNC continued to have yield percentages slightly below the agency mREIT average while ARR and CYS continued to have yield percentages above the agency mREIT average.
    • My current buy, sell, or hold recommendation on each mREIT company within this analysis is stated in the “Conclusions Drawn” section of the article.
  • Prospect Capital's Dividend And Net Asset Value Sustainability Analysis (Post-Fiscal Q4 2014 Earnings) - Part 2
    Wed, Oct. 1 PSEC 157 Comments

    Summary

    • Part 2 of this article discusses three additional topics/trends impacting PSEC’s future dividend and NAV sustainability.
    • First, PSEC’s upcoming consolidation of the company’s wholly-owned and substantially wholly-owned holding companies will have specific NII and net ICTI impacts.
    • Second, I have classified 96% of PSEC’s investment portfolio performing near or above expectations as of 6/30/2014 (4% of the portfolio was performing slightly, modestly, or materially below expectations).
    • Third, PSEC’s investment portfolio continues to have several portfolio companies with moderate unrealized FMV losses (capital depreciation), thus modestly raising the risk of the company’s future NAV sustainability.
    • Projections for PSEC’s monthly dividends for the fiscal fourth quarter of 2015 and NAV per share ranges for the fiscal year 2015 are stated at the end of the article.
  • Update: Prospect Capital Declares January 2015 Dividend In Line With My Projection And Discloses A Material 'Monetization Event'
    Thu, Sep. 25 PSEC 40 Comments

    Summary

    • On 9/24/2014, PSEC declared a January 2015 monthly dividend of $0.110625 per share.
    • This dividend declaration was what I projected in a previous PSEC dividend and NAV sustainability article.
    • In addition, PSEC stated there was a “monetization event” with one of the company’s control investments which impacts ICTI.
    • However, there are two specific taxation classifications that could occur in regards to this event which would materially change PSEC's net ICTI figures.
    • This article briefly explains these two different taxation classifications and the net ICTI impacts.
  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post-Fiscal Q4 2014 Earnings) - Part 1
    Thu, Sep. 18 PSEC 79 Comments

    Summary

    • PSEC’s net investment income ("NII") figures are based on GAAP methodologies, while the company’s net investment company taxable income ("ICTI") figures are based on IRC methodologies.
    • As I have always stated, a BDC’s net ICTI is more important versus NII regarding dividend sustainability metrics. In PSEC’s 2014 10-K, the company increased its IRC disclosures.
    • During the fiscal fourth quarter of 2014, PSEC reported disappointing NII and net ICTI figures. Due to heightened demand, I have expanded this analysis to perform four dividend sustainability tests.
    • Summarized results from the four tests performed within this analysis, in regards to PSEC’s dividend sustainability, are stated within the “Conclusions Drawn” section of the article.
    • Part 2 of this analysis will discuss some additional topics/trends that will impact PSEC’s future dividend and net asset value (NAV) sustainability.
  • American Capital Agency Corp.'s Dividend Range Scenarios For Q3 2014
    Wed, Sep. 10 AGNC 64 Comments

    Summary

    • This article provides a detailed analysis of AGNC’s dividend range scenarios for the third quarter of 2014.
    • AGNC should continue the company’s recent approach of matching quarterly ERTI and net dollar roll to dividend distributions.
    • AGNC has implied all net dollar roll income generated from the company’s net long TBA MBS position would be an added component to dividend distributions when favorable business conditions persist.
    • My exact AGNC, MTGE, and NLY dividend per share projections for the third quarter of 2014 are stated near the end of the article.
    • My current buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the “Conclusions Drawn” section of the article.
  • Analyzing Prospect Capital Corp.'s Recently Restructured Control Investments And Its Impact On NII
    Editors' Pick • Fri, Sep. 5 PSEC 95 Comments

    Summary

    • PSEC reported disappointing NII of $0.25 per share for the fiscal fourth quarter of 2014 which led me to question what occurred within the company’s investment portfolio.
    • Within PSEC’s 10-K for the fiscal year-ended 6/30/2014, management disclosed the company had restructured most of its control investment portfolio during the fiscal fourth quarter of 2014.
    • This restructuring was in anticipation of the adoption of an update to ASC 946 where PSEC will consolidate certain wholly-owned and substantially wholly-owned holding companies to be GAAP compliant.
    • Debt investments at the holding company level would need to be consolidated per the update to ASC 946 whereas debt investments at the operating company level do not.
    • This analysis will show the impacts of several debt/equity conversions in association with the restructured control investment portfolio and explain how this event directly affects NII.
  • Comparing Annaly Capital Management's BV, Dividend, Risk, And Valuation To Several mREIT Peers - Part 1
    Tue, Sep. 2 NLY 34 Comments

    Summary

    • NLY reported an increase in BV of 7.55% and an economic return of 10.00% during the second quarter of 2014.
    • NLY’s above average quarterly results, when compared to the rest of the mREIT sector, were partially due to the company’s high proportion of 30-year fixed-rate agency MBS.
    • NLY’s above average quarterly results were also due to an aggressive reduction of the company’s hedging coverage ratio.
    • As of 8/29/2014, NLY, AGNC, and ARR traded at or near a material discount to BV as of 6/30/2014 while WMC traded at a minor discount.
    • My current BUY, SELL, or HOLD recommendation for NLY and each company analyzed in this article will be in the “Conclusions Drawn” section of this article.
  • Update: Prospect Capital's Earnings For Fiscal Q4 2014 And My Reaction To The Results
    Tue, Aug. 26 PSEC 87 Comments

    Summary

    • On 8/25/2014, PSEC reported results for the fiscal fourth quarter of 2014.
    • PSEC reported NII of $0.25 per share and earnings of $0.21 per share.
    • In my opinion, there are several key points to discuss from this quarter.
    • I believe there is strong evidence PSEC had a disappointing quarter and this article briefly explains why.
    • My revised buy, sell, or hold recommendation for PSEC is stated in the “Conclusions Drawn” paragraph.
  • American Capital Agency Corp.'s Dividend Sustainability Analysis (Post Q2 2014 Earnings) - Part 2
    Mon, Aug. 25 AGNC 35 Comments

    Summary

    • AGNC’s on-balance sheet leverage ratio (excluding TBA positions) went from 5.9x as of 3/31/2014 to 5.0x as of 6/30/2014 which led to the decrease in quarterly ERTI.
    • AGNC had a cumulative capital loss carryforward of ($1.37) billion as of 6/30/2014 which will have both positive and negative impacts on the company’s future dividend sustainability.
    • AGNC increased the company’s net long TBA MBS position during the second quarter of 2014 which led to the increase in net dollar roll income.
    • AGNC has implied all net dollar roll income generated from the company’s net long TBA MBS position would be an added component to dividend distributions when favorable business conditions persist.
    • My final dividend sustainability conclusion along with my buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the “Conclusions Drawn” section of the article.
  • Fifth Street Senior Floating Rate's Recent Material Equity Offering And Its Impact On NAV
    Editors' Pick • Mon, Aug. 18 FSFR 35 Comments

    Summary

    • On 8/13/2014, after FSFR reported results for the fiscal third quarter of 2014, the company announced the anticipated equity offering that was discussed in my prior article.
    • However, what surprised markets and myself was the size of the announced equity offering (22.8 million shares of common stock; over three times the size of FSFR’s initial public offering).
    • This article incorporates FSFR’s recently announced material equity offering into the financials and shows why this event will materially decrease the company’s current NAV.
    • The net issuance price of FSFR’s recently announced equity offering is $12.14 per share which is materially below the company’s NAV as of 6/30/2014 thus materially diluting existing shareholders.
    • My buy, sell, or hold recommendation for FSFR is stated in the “Conclusions Drawn” section of the article.
  • American Capital Agency Corp.'s Dividend Sustainability Analysis (Post Q2 2014 Earnings) - Part 1
    Editors' Pick • Thu, Aug. 14 AGNC 49 Comments

    Summary

    • AGNC reported estimated REIT taxable income ("ERTI") available to common shareholders of $100 million (or $0.28 per common share) for the second quarter of 2014.
    • However, AGNC reported ERTI and net dollar roll income available to common shareholders of $238 million (or $0.67 per common share) for the second quarter of 2014.
    • AGNC had a quarterly ERTI underpayment (overpayment) of ($130) million and a quarterly payout ratio of 230%.
    • However, AGNC had a quarterly ERTI and net dollar roll underpayment (overpayment) of $8 million and a quarterly payout ratio of 96%.
    • Part 2 will discuss some additional topics/trends to consider in a general net rising (and falling) interest rate environment regarding AGNC’s, MTGE’s, and NLY’s dividend sustainability.
  • Prospect Capital Corp.'s Upcoming Fiscal Q4 2014 Net Asset Value Projection
    Fri, Aug. 8 PSEC 77 Comments

    Summary

    • I am projecting PSEC will report a modest decrease in net asset value (‘NAV’) during the fiscal fourth quarter of 2014 (NAV per share projection is stated within the article).
    • Part of the projected modest decrease in NAV during the fiscal fourth quarter of 2014 is due to the Chapter 7 Bankruptcy of New Century Transportation, Inc.
    • I am projecting PSEC will generate an economic return of 1.96% for the fiscal fourth quarter of 2014.
    • Beginning with the fiscal first quarter of 2015, PSEC will consolidate certain wholly-owned and substantially wholly-owned holding companies to be in compliance with an update to ASC 946 (ASU 2013-08).
    • My buy, sell, or hold recommendation for PSEC is stated in the “Conclusions Drawn” section of the article.
  • Fifth Street Senior Floating Rate's Upcoming Fiscal Q3 2014 Net Asset Value Projection
       • Wed, Jul. 30 FSFR 29 Comments

    Summary

    • I am projecting FSFR will report a total increase (decrease) in net assets of $0.1 million for the fiscal nine-months ended 6/30/2014.
    • I am projecting FSFR will report a net asset value (‘NAV’) of $15.14 per share as of 6/30/2014 (net asset value range is stated within the article).
    • I am projecting FSFR will report an increase (decrease) in NAV of 0.07% and generate an economic return of 1.85% for the fiscal third quarter of 2014.
    • FSFR is in the process of forming a strategic joint venture (‘JV’) partnership with GF Funding 2014 to expand the company’s investment portfolio but needs additional financing/capital.
    • On 7/10/2014, FSFR held a special meeting of stockholders where a proposal was approved allowing the company to sell shares of its common stock at a price below current NAV.
  • Fifth Street Finance's Upcoming Fiscal Q3 2014 Net Asset Value Projection
       • Mon, Jul. 28 FSC 52 Comments

    Summary

    • I am projecting FSC will report a total increase (decrease) in net assets of ($9.6) million for the fiscal nine-months ended 6/30/2014.
    • I am projecting FSC will report a net asset value (‘NAV’) of $9.77 per share as of 6/30/2014 (net asset value range is stated within the article).
    • FSC had an above average level of portfolio company sales/repayments/syndications which I project slightly hindered net investment income (‘NII’) during the fiscal third quarter of 2014.
    • I am projecting FSC will report an increase (decrease) in NAV of (0.44%) but generate an economic return of 2.11% for the fiscal third quarter of 2014.
    • I believe FSC will begin to increase the company’s NII beginning in the fiscal fourth quarter of 2014 due to its recently formed joint venture ('JV') partnership.
  • American Capital Agency's Upcoming Q2 2014 Book Value Projection
    Editors' Pick • Tue, Jul. 22 AGNC 123 Comments

    Summary

    • I am projecting AGNC will report a total increase (decrease) in net common equity of $504 million for the six months ended 6/30/2014.
    • I am projecting AGNC will report an increase (decrease) in quarterly BV of 4.52% and generate an economic return of 7.19% for the second quarter of 2014.
    • My projection for AGNC’s book value per common share as of 6/30/2014 is stated in the “Conclusions Drawn” section of the article.
    • My projection for MTGE’s and NLY’s book value per common share as of 6/30/2014 is stated just above the “Conclusions Drawn” section of the article.
    • My buy, sell, or hold recommendation for AGNC, MTGE, and NLY is stated in the “Conclusions Drawn” section of the article.
  • American Capital Agency Corp.'s Upcoming Q2 2014 Consolidated Statement Of Comprehensive Income Projection - Part 3
    Wed, Jul. 16 AGNC 30 Comments

    Summary

    • Most 15 and 30-year fixed-rate agency MBS coupons saw a modest to material price appreciation during the second quarter of 2014.
    • I am projecting AGNC will report a net unrealized gain (loss) on available-for-sale securities of $610 million for the second quarter of 2014.
    • I am projecting AGNC will report a net unrealized gain (loss) on interest rate swaps (upon reclassification to interest expense) of $41 million for the second quarter of 2014.
    • My projection for AGNC’s comprehensive income (loss) amount for the second quarter of 2014 is stated in the “Conclusions Drawn” section of the article.
    • A future article, which will be published prior to AGNC’s quarterly press release, will project the company’s BV as of 6/30/2014.
  • American Capital Agency Corp.'s Upcoming Q2 2014 Consolidated Statement Of Comprehensive Income Projection - Part 2
    Editors' Pick • Sun, Jul. 13 AGNC 37 Comments

    Summary

    • I am projecting AGNC will report a net gain (loss) on sale of derivative instruments and other securities of ($390) million for the second quarter of 2014.
    • I am projecting AGNC will report a management fees expense of $30 million for the second quarter of 2014.
    • My projection for AGNC’s net income (loss) and earnings per share amounts for the second quarter of 2014 are stated in the “Conclusions Drawn” section of the article.
    • Part 3 of the article will project the remaining accounts that make up AGNC's other comprehensive income (loss) and total comprehensive income (loss) amounts.
  • American Capital Agency's Upcoming Q2 2014 Consolidated Statement Of Comprehensive Income Projection - Part 1
    Editors' Pick • Tue, Jul. 8 AGNC 37 Comments

    Summary

    • I am projecting AGNC will report interest income of $360 million for the second quarter of 2014.
    • I am projecting AGNC will report an interest expense of $105 million for the second quarter of 2014.
    • I am projecting AGNC will report a net gain (loss) on sale of agency securities of $150 million for the second quarter of 2014.
    • Part 2 of the article will project the remaining accounts that make up AGNC's net income (loss) account (mainly the quarterly valuation changes in the company’s derivative portfolio).
    • Part 3 of the article will project the remaining accounts that make up AGNC's other comprehensive income (loss) and total comprehensive income (loss) accounts.
  • American Capital Agency's Recent Book Value And Dividend Compared To Its Agency mREIT Peers - Part 2
    Tue, Jul. 1 AGNC 41 Comments

    Summary

    • AGNC, along with the company’s agency mREIT peers, had a stable dividend per share rate during the second quarter of 2014.
    • Constant lowering yield percentages across the agency mREIT sector during 2013 caused a stabilization of each company's dividend per share rate during 2014.
    • AGNC continued to have yield percentages basically in-line with the agency mREIT average, thus inherently lowering the risk of dividend reductions throughout the remainder of 2014.
    • CMO, HTS, and NLY continued to have yield percentages below the agency mREIT average, while ARR and CYS continued to have yield percentages above the agency mREIT average.
    • My buy, sell, or hold recommendation on each agency mREIT company within this analysis is stated in the "conclusions drawn" section of the article.
  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q3 2014 Earnings) - Part 2
    Editors' Pick • Mon, Jun. 23 PSEC 112 Comments

    Summary

    • PSEC had an annualized weighted average yield on the company's debt investments of 12.5% as of 3/31/2014, thus helping maintain its current dividend sustainability.
    • Using FMV methodologies, I have classified 96% of PSEC's investment portfolio as performing near or above expectations as of 3/31/2014 (4% of portfolio was performing slightly, modestly, or materially below expectations).
    • PSEC's investment portfolio continues to have several portfolio companies with moderate unrealized FMV losses (capital depreciation), thus slightly raising the risk of the company's future NAV sustainability.
    • My PSEC dividend per share projections for January-March 2015 and NAV per share ranges for several upcoming quarters are stated at the end of the article.
  • Prospect Capital Corp.'s Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q3 2014 Earnings) - Part 1
    Editors' Pick • Mon, Jun. 16 PSEC 144 Comments

    Summary

    • PSEC had an underpayment (overpayment) of net investment income (‘NII’) of ($16.8) million for the fiscal first three quarters of 2014 (based on GAAP methodologies).
    • PSEC had an underpayment (overpayment) of net investment company taxable income (‘ICTI’) of ($1.7) million for the fiscal first three quarters of 2014 (based on IRC methodologies).
    • Starting with PSEC’s fiscal first quarter of 2015, understanding the differences between NII and net ICTI will be heightened in regards to providing accurate future dividend projections.
    • Summarized results from Test 1 and Test 2, in regards to PSEC’s dividend sustainability, are stated within the “conclusions drawn” section of the article.
    • Part 2 of this analysis will discuss some additional topics/trends that will impact PSEC’s future dividend and net asset value ('NAV') sustainability.
  • American Capital Agency's Dividend Range Scenarios For Q2 2014
    Editors' Pick • Tue, Jun. 10 AGNC 52 Comments

    Summary

    • AGNC’s best-case scenario is a quarterly dividend of $0.75 per share.
    • AGNC’s worst-case scenario is a quarterly dividend of $0.55 per share.
    • AGNC’s “middle-of-the-road” scenario is a quarterly dividend of $0.60-$0.70 per share.
    • AGNC’s management team implied net dollar-roll income generated from the company’s net long TBA MBS position should be considered as an added component to dividends when favorable business conditions exist.
    • My exact AGNC, MTGE, and NLY dividend per share projections for the second quarter of 2014 are stated near the end of the article.