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Mortgage-backed securities continue their tumble, the yield on Fannie Mae issuance up another 8...

Mortgage-backed securities continue their tumble, the yield on Fannie Mae issuance up another 8 bps to a 20-month high of 3.29%. The "violent" reaction to the "moderate" shift in Fed message proves the market was "all-in" says TCW's Bryan Whalen. The slide in MBS prices eventually might make for great opportunities for mREITs (REM -3.9%), but for now book values may continue to deteriorate. American Capital (AGNC -4.8%), MTGE>>, Armour (ARR -3.9%), Invesco (IVR -4.4%), New York Mortgage (NYMT -5.1%), Apollo (AMTG -4.8%), Javelin (JMI -4.7%).
Comments (12)
  • I hope all the lemmings have finally jumped off the cliff.
    Dean
    20 Jun 2013, 04:55 PM Reply Like
  • Buy on bad news, sell on good news. Today I bought another 314 shares of AGNC. This at a new low + qualified for the dividend. Amazing. Now hold 1,515 shares all recent buys, and may buy more on continued weakness and or any new lows. Compare to hybrid REIT's? Do they pay this kind of yield? Not! --- Do a six month time frame on your charts. This is the potential upside going forward.
    20 Jun 2013, 04:56 PM Reply Like
  • I agree Charles. I worked on my shopping list today and picked up some NYMT and WMC
    20 Jun 2013, 05:18 PM Reply Like
  • As interest rates go up, Reits will get hit big time. The big dividend will not help. Left ARR at $7.10 , $4.00 could be right around the corner.
    20 Jun 2013, 07:54 PM Reply Like
  • Why don't more investors see the recent market move as a huge signal to buy, not sell?

     

    The end of QE means that the economy is doing better. This, in turn, means that companies will be doing better. Stock prices will rebound in big way. (credit to WSJ radio this afternoon for this statement)
    20 Jun 2013, 08:11 PM Reply Like
  • <<Why don't more investors see the recent market move as a huge signal to buy, not sell?>>

     

    They're not INVESTORS.

     

    That's why.
    20 Jun 2013, 09:46 PM Reply Like
  • Been trading AGNC ever since the 09 bottom. My problem is selling way too early, I am mostly right on when to get in (it seems so obvious). Purchased 1800 shares in last 24 hours qualified for DIV. An impossible scenario would have to occur for this to not be a good investment: Interest rates would need to skyrocket in this deflationary muddling world economy for AGNC's government guaranteed investments to wilt! Why everyone thinks the FED is the only thing that matters and treat their every utterance with Bi-Polar irrationality (Bernanke seems so reasonable to me) is beyond my grasp!
    20 Jun 2013, 09:23 PM Reply Like
  • Made money today because my shares in several mREITS were protected with options. It's useful to know how to use "protected puts."
    20 Jun 2013, 10:08 PM Reply Like
  • Traderbear,
    So what did you do to make money & protect your investment?
    I would like to do that!
    23 Jun 2013, 11:58 AM Reply Like
  • Just happy my ARR is paying it's dividend for the next 3 months.
    20 Jun 2013, 11:59 PM Reply Like
  • I hope share price stays the same or goes up.
    If not, three months of dividends can be lost in the blink of an eye.
    21 Jun 2013, 09:20 AM Reply Like
  • I bought some $IVR. Feel like the Fed shift towards interest rates is over-rated the economy is not going to keep pace with Fed projections and as Fed does not taper (per market projections) this would cause a rate reversal.... it could take time for this to matrialize. Meanwhile, the dividend return is good for this this Qtr.
    21 Jun 2013, 12:33 PM Reply Like
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