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Capstead Mortgage (CMO): Q2 EPS of $0.27 misses by $0.05. (PR)

Capstead Mortgage (CMO): Q2 EPS of $0.27 misses by $0.05. (PR)
Comments (5)
  • From earnings reports: “The second quarter was also notable for an abrupt shift in the market to significantly higher long-term interest rates in large part due to concerns regarding the timing of the Federal Reserve reducing and ultimately ending its bond buying program. While we are not immune to this volatility, pricing for our portfolio of short-duration and well-seasoned ARM securities has held up reasonably well compared to pricing for longer duration ARM or fixed-rate mortgage securities. Consequently, we experienced a relatively modest book value decline through quarter-end of 3.8%, or $0.52 per common share, related to our portfolio net of interest rate hedges and other operational factors."
    24 Jul 2013, 05:10 PM Reply Like
  • Capstead's portfolio held up much better than did Hatteras' portfolio, so hopefully the market will stop punishing all the mREITs.
    24 Jul 2013, 05:15 PM Reply Like
  • The fact that Capstead did better than expected by some seems attributable to their variable rates, at least according to them. Therefore, it does not seem like this positive surprise would necessarily carry over to agency and fixed based MREITs. I still think that the rise in 10 year yields today had more to do with the sell off than Hatteras.
    24 Jul 2013, 06:08 PM Reply Like
  • This is very funny considering that Hatteras said that their variable mortgages underperformed fixed mortgages. I guess it depends on what is meant by well seasoned.
    24 Jul 2013, 06:18 PM Reply Like
  • bingo tstreet. HTS had added a ton of brand new 7/1 arms, and 15 year fixed to their book. it was that stuff that caused 80% of their book value drop. I dont care what anybody says, its all about duration, and HTS reached for yield, tried to get cute, and they got spanked.
    25 Jul 2013, 07:26 AM Reply Like
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