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American Capital Agency (AGNC) and CYS Investments are downgraded to Hold at Nomura following...

American Capital Agency (AGNC) and CYS Investments are downgraded to Hold at Nomura following AGNC's ugly Q1 (CYS also had a substantial decline in BV during Q1). Analyst Bill Carcache notes "mortgage market dynamics are increasingly volatile and unpredictable," with AGNC in double-trouble thanks to complacency about prepayment risk. AGNC +0.9%, CYS -0.7% premarket.
Comments (4)
  • Van Hyder
    , contributor
    Comments (162) | Send Message
    Way to go Nomura, downgrade AFTER the earnings. What do folks pay these "analyst" for?
    6 May 2013, 09:19 AM Reply Like
  • dhdhoora
    , contributor
    Comments (379) | Send Message
    The Nomura analyst, obviously, does not follow AGNC...


    "Our AGNC downgrade is also based on heightened risk that the mortgage market will once again become complacent with prepayment risk,"


    AGNC has repeatedly demonstrated a heightened awareness and smart strategy in managing pre-payment risk -- as illustrated by moving much of their book to lower face value HAMP mortgages.
    Alas, another wannabe trying to make a name for himself without first doing his homework...


    All the very best,
    6 May 2013, 10:10 AM Reply Like
  • JimDunn
    , contributor
    Comments (9) | Send Message
    Notice that Seeking Alpha is becoming like Yahoo? Everybody with an opinion is an expert.
    6 May 2013, 10:18 AM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
    Analysts are historians and assume that history is a good indicator of the future.


    History is important, but it only goes so far.


    The present gives us clues, but you have to be a clairvoyant to navigate the investing world.


    Keep your mind and eyes open, and wake me if anything interesting happens.
    6 May 2013, 12:22 PM Reply Like
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