- About the best thing to be said of American Capital Agency's (AGNC +6%) Q is "better than feared," says KBW (which has the stock a Buy with $27 PT). An 11.8% decline in book value beat market expectations, but was worse than KBW's models predicted. While still positive on the stock, the team sees the valuation being stuck at less than 90% of book until rate volatility subsides and the dividend outlook clears.
- Sterne Agree retains its Hold and $22 PT, also saying book value missed what its model suggested. "With the shares at about 86% of book value, we suspect most of this is already discounted."
- Fellow mortgage REIT giant Annaly (NYSE:NLY) is set to report on Thursday.