AGNC has a perceived better prepayment risk vs. NLY. You know how AGNC's disclosure is wide open and NLY's is less than forthcoming.
AGNC has a significant (intentionally) percent of MBS in 15-year MBS, which reduces prepayment risk. Homeowners are less likely to refinance with a shorter mortgage term and less interest paid out per month.
NLY is not perceived (I'm being polite) as being a "full-disclosure" mreit to shareholders.
Kain/agnc and the entire team @ agnc are wide open about their positions/strategies/c... calls.
NLY? No. IVR = no. What happened Mr. Ross at IVR with the speculative hedge which went south? No answer.
I want my money with a forthcoming management team. That's my take.
Will Operation Twist Work For mREITs? [View article]
Hi Uain53,
One of my investment themes is to avoid what is going on page 1 of WSJ or CNBC headline news. There are some very strange events occurring which I have not been invited to.
One issue regarding U.S. Treasury Bill short-rates: as Euro currency leaves, it arrives here & has been going to Switzerland and the U.S.
The only reason we see days where the T-Bill has a negative yield (even temporary), or gold is going up (even against a strong US$, and we are in a deflationary environment) --- it is caused to protect the Euro currency fleeing, and US/non-Euro dollars seeking a safe haven.
When 40-60% of our stock market is high frequency trading on our equity markets (see: hft.thomsonreuters.com/), one knows something doesn't add up.
Switzerland devalues its franc: Q&A The era of global "currency wars" has taken a dramatic turn after Switzerland abandoned its floating exchange rate, setting a floor against the euro to counter safe-haven flight from eurozone debtors. 9:14PM BST 06 Sep 2011 www.telegraph.co.uk/fi...
5 Top September Dividend Stocks (And 2 Hedges) [View article]
Hi bigazul - great point about options
For a simple hedge: to be dollar for dollar, I'll use SH for short durations. If I have portfolio that has a high correlation to the SP500, I'll definitely use SPY options.
Normally, I have unbalanced calendar SPY put spreads in motion. September has the extra Sept 30 to take advantage, as indices have the quarter end pricing.
I'll rotate out longer duration on up days, higher strike price, because of the SPY option liquidity.
To take a position - for me - sometimes it is easier to buy the SH for the short term until I re-balance the put spread.
Thanks for letting me clarify that issue. Best, Todd
5 Top September Dividend Stocks (And 2 Hedges) [View article]
Hi Skyraider,
Thanks for your feedback. Let's say I spend less time outside than others.;)
How a CEF pays dividends will be based upon dividends, capital gains, interest received, and covered call option premium income. To what extent the term "return of capital" is used in a tax-reporting CEF annual life cycle is up to debate. The investor will have the best results by buying GGN below NAV. Waiting for a sub XGGNX pricing provides the best entry point.
The selling covered call income may be reported as return of capital if the excerpted info is not met. GGN may have more capital gains than usual this year, and is using that to pay dividends if all sources of income are not meeting the 14-cent dividend.
GGN's above return reflects a typical covered call strategy:
Non-GGN SEC wording: "The Fund will, on an ongoing and consistent basis, sell covered call options to seek to generate a reasonably steady return from option premiums.."
"Each quarter, the Board of Trustees reviews the amount of any potential distribution and the income, capital gain, or capital available. The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. The Fund’s distribution policy is subject to modification by the Board of Trustees at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
A portion of the distribution may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum federal income tax rate, which is currently 15% in taxable accounts for individuals.
If the Fund does not generate sufficient earnings from dividends and interest received and net realized capital gains equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s investment income and net realized capital gains would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and is treated as a reduction in the shareholder’s cost basis. Under federal tax regulations, some or all of the return of capital distributed by the Fund may be taxable as ordinary income in certain circumstances. This may occur when the Fund has a capital loss carry forward, net capital gains are realized in a fiscal year and distributions are made in excess of investment company taxable income."
5 Top September Dividend Stocks (And 2 Hedges) [View article]
Ronharv, here are the details. I was using Linn Energy website and SEC filings as a source of info. The info was announced on July 26th. I expect the November distribution.
I pay pretty close attention to LINE distributions. The next one - paid in November - should be announced in the last week of October 2011. Last year's was October 25, 2010: ir.linnenergy.com/rele...
ir.linnenergy.com/divi... DECLARED: 07/26/11 EX-DATE : 08/03/11 RECORD 08/05/11 PAYABLE: 08/12/11 AMOUNT: 69-cents TYPE: US currency.
7 Reasons To Buy Altria In Current Turbulent Markets [View article]
Hi Arthur_bishop1972 -
PM will be entering this markets with extensive tobacco litigation to set up operations without the onslaught of regulations, high taxes. People want to smoke in these countries. I read the sec filings to note the methodical steps PM is taking to avoid flashbacks to the U.S. attacking the industry.
Hi evannever, thanks for the feedback. I wish I knew more info and didn't have to rely upon reading into tea leaves so to speak. Operation Twist from the 60's, a Soros' backed nationwide refinance plan paid by "bond holders", a pending SEC 60-day fact seeking journey -- where does it end?
Tough to navigate when I don't know if the President will say something tomorrow night that will materially impact my holdings.
I wish I could be more definitive but the ebb and flow of facts, rumors just make it tough.
7 Closed-End Funds Under the Microscope [View article]
Hi Douglas - good point. There are always timing issues. Some people buy CEF's at face value with an immediate haircut to pay the sales staff. Best, Todd
7 Closed-End Funds Under the Microscope [View article]
Hi Chancer,
I am - in article - reviewing the "total annualized rate of return" for 3-years. If a CEF earned 17.7% for 3-years by selling covered calls, dividends paid out, or capital appreciation in underlying equities - the facts are the facts.
"The Kennedy Administration’s proposed solution to this dilemma was to try to lower longer-term interest rates while keeping short-term interest rates unchanged—an initiative now known as “Operation Twist” in homage to the dance craze then sweeping the nation."
"In many respects, Operation Twist was similar to the Federal Reserve’s recently announced program of Treasury purchases, dubbed “QE2” by the financial press. First, both programs aimed to lower longer-term interest rates without lowering short-term rates."
Will Operation Twist Work For mREITs? [View article]
Hi dvndmoney32, IVR is just 3-letters to me. If the stock performs well, then I'm all for any stock symbol that goes up. I have wrote my views about the company. Best, Todd
Will Operation Twist Work For mREITs? [View article]
Best, Todd
7 Closed-End Funds Under the Microscope [View article]
GNT Fact Sheet:
gabelli.com/Gab_pdf/fa...
Inception: January 26, 2011
www.cefconnect.com/Det...
Net Assets: $356.444M
GGN Fact Sheet:
gabelli.com/Gab_pdf/fa...
vs GGN:
Total Net Assets: $1,184.852M
Has mREIT Nirvana Vanished? [View article]
AGNC has a significant (intentionally) percent of MBS in 15-year MBS, which reduces prepayment risk. Homeowners are less likely to refinance with a shorter mortgage term and less interest paid out per month.
NLY is not perceived (I'm being polite) as being a "full-disclosure" mreit to shareholders.
Kain/agnc and the entire team @ agnc are wide open about their positions/strategies/c... calls.
NLY? No. IVR = no. What happened Mr. Ross at IVR with the speculative hedge which went south? No answer.
I want my money with a forthcoming management team. That's my take.
Will Operation Twist Work For mREITs? [View article]
One of my investment themes is to avoid what is going on page 1 of WSJ or CNBC headline news. There are some very strange events occurring which I have not been invited to.
One issue regarding U.S. Treasury Bill short-rates: as Euro currency leaves, it arrives here & has been going to Switzerland and the U.S.
The only reason we see days where the T-Bill has a negative yield (even temporary), or gold is going up (even against a strong US$, and we are in a deflationary environment) --- it is caused to protect the Euro currency fleeing, and US/non-Euro dollars seeking a safe haven.
When 40-60% of our stock market is high frequency trading on our equity markets (see: hft.thomsonreuters.com/), one knows something doesn't add up.
Switzerland devalues its franc: Q&A
The era of global "currency wars" has taken a dramatic turn after Switzerland abandoned its floating exchange rate, setting a floor against the euro to counter safe-haven flight from eurozone debtors.
9:14PM BST 06 Sep 2011
www.telegraph.co.uk/fi...
7 Reasons To Buy Altria In Current Turbulent Markets [View article]
5 Top September Dividend Stocks (And 2 Hedges) [View article]
For a simple hedge: to be dollar for dollar, I'll use SH for short durations. If I have portfolio that has a high correlation to the SP500, I'll definitely use SPY options.
Normally, I have unbalanced calendar SPY put spreads in motion. September has the extra Sept 30 to take advantage, as indices have the quarter end pricing.
I'll rotate out longer duration on up days, higher strike price, because of the SPY option liquidity.
To take a position - for me - sometimes it is easier to buy the SH for the short term until I re-balance the put spread.
Thanks for letting me clarify that issue. Best, Todd
5 Top September Dividend Stocks (And 2 Hedges) [View article]
Thanks for your feedback. Let's say I spend less time outside than others.;)
How a CEF pays dividends will be based upon dividends, capital gains, interest received, and covered call option premium income. To what extent the term "return of capital" is used in a tax-reporting CEF annual life cycle is up to debate. The investor will have the best results by buying GGN below NAV. Waiting for a sub XGGNX pricing provides the best entry point.
The selling covered call income may be reported as return of capital if the excerpted info is not met. GGN may have more capital gains than usual this year, and is using that to pay dividends if all sources of income are not meeting the 14-cent dividend.
09.07.11: $17.06
09.08.10: $16.64
Monthly dividend: 14-cents per-month for 5.5-years
finance.yahoo.com/q/hp...
GGN's above return reflects a typical covered call strategy:
Non-GGN SEC wording: "The Fund will, on an ongoing and consistent basis, sell covered call options to seek to generate a reasonably steady return from option premiums.."
Gabelli: August 18th, 2011
gabelli.com/Gab_pdf/PR...
"Each quarter, the Board of Trustees reviews the amount of any potential distribution and the income, capital gain, or capital available. The Board of Trustees will continue to monitor the
Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. The Fund’s distribution policy is subject to modification by the Board of
Trustees at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
A portion of the distribution may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum federal income tax rate, which is currently 15% in taxable accounts for individuals.
If the Fund does not generate sufficient earnings from dividends and interest received and net realized capital gains equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s investment income and net realized capital gains would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and is treated as a reduction in the shareholder’s cost basis. Under federal tax regulations, some or all of the return of capital distributed by the Fund may be taxable as ordinary income in certain circumstances. This may occur when the Fund has a capital loss carry forward, net capital gains are realized in a fiscal year and distributions are made in excess of investment company taxable income."
Hopefully helps a bit. Todd
5 Top September Dividend Stocks (And 2 Hedges) [View article]
I pay pretty close attention to LINE distributions. The next one - paid in November - should be announced in the last week of October 2011. Last year's was October 25, 2010: ir.linnenergy.com/rele...
ir.linnenergy.com/divi...
DECLARED: 07/26/11
EX-DATE : 08/03/11
RECORD 08/05/11
PAYABLE: 08/12/11
AMOUNT: 69-cents
TYPE: US currency.
Dividend Increase
files.shareholder.com/...
Best, Todd
7 Reasons To Buy Altria In Current Turbulent Markets [View article]
PM will be entering this markets with extensive tobacco litigation to set up operations without the onslaught of regulations, high taxes. People want to smoke in these countries. I read the sec filings to note the methodical steps PM is taking to avoid flashbacks to the U.S. attacking the industry.
$5 billion in stock buybacks by PM this year.
Best, Todd
Has mREIT Nirvana Vanished? [View article]
Tough to navigate when I don't know if the President will say something tomorrow night that will materially impact my holdings.
I wish I could be more definitive but the ebb and flow of facts, rumors just make it tough.
Best, Todd
pm sent.
Has mREIT Nirvana Vanished? [View article]
7 Closed-End Funds Under the Microscope [View article]
7 Closed-End Funds Under the Microscope [View article]
I am - in article - reviewing the "total annualized rate of return" for 3-years. If a CEF earned 17.7% for 3-years by selling covered calls, dividends paid out, or capital appreciation in underlying equities - the facts are the facts.
I try to present as much info as possible.
Best, Todd
Will Operation Twist Work For mREITs? [View article]
"Operation Twist was designed to keep short-term rates low"
www.frbsf.org/publicat...
"The Kennedy Administration’s proposed solution to this dilemma was to try to lower longer-term interest rates while keeping short-term interest rates unchanged—an initiative now known as “Operation Twist” in homage to the dance craze then sweeping the nation."
"In many respects, Operation Twist was similar to the Federal Reserve’s recently announced program of Treasury purchases, dubbed “QE2” by the financial press. First, both programs aimed to lower longer-term interest rates without lowering short-term rates."
Will Operation Twist Work For mREITs? [View article]