Seeking Alpha

American Capital and Armour results chill mREIT sector

  • The first post-earnings downgrade for American Capital Agency (AGNC) comes from BAML, which removes its Buy rating. The quick take from the company's results (reported last night) shows CIO Gary Kain lightening up the portfolio and shortening duration just as the bond market was set to reverse course and move sharply higher. Today's 11 ET conference call should prove a worthy listen. AGNC -4.7% premarket.
  • Armour Residential results show pretty much the same thing, with the book dropping to $16.7B from $22.6B a quarter earlier. ARR -4.1%.
  • Other agency players premarket: Annaly (NLY-1.9%, CYS Investments (CYS-0.8%.
  • Kain's non-agency vehicle: American Capital Mortgage (MTGE-4.3%.
  • ETFs: REM -0.6%. Also: MORT, MORL.
Comments (3)
  • itscalledcommonsense
    , contributor
    Comments (1176) | Send Message
    Wish I was short. Damn. How could they lose BV this quarter? It boggles the mind. These guys getting whip sawed.
    29 Oct 2013, 10:23 AM Reply Like
  • hummerh25
    , contributor
    Comments (99) | Send Message
    Yes the wheels are coming off the wagon. $2.50 to $3. On the way. Big dividend, well it just lost 6 months worth today.
    29 Oct 2013, 10:37 AM Reply Like
  • Cavalaw
    , contributor
    Comments (134) | Send Message
    They did NOT lose BV THIS quarter. but the third quarter....July September....and it was expected worse than that
    29 Oct 2013, 11:02 AM Reply Like
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