Seeking Alpha

Drop in prepayments boosts Hatteras margins

  • Book value of $21.50 per share gained a hair from $21.31 at the end of Q3 and compares to last night's close of $18.81. Core earnings of $0.51 per share compares to the most recent $0.50 dividend.
  • Net interest spread jumps to 1.26% from 0.86% in Q3, with the yield on average assets of 2.16% rising from 1.8%. A large driver is the drop in prepayments as rates rose - CPR falls to 14.2% in Q4 from 19.7% previously.
  • Portfolio size drops to $20.1B from  $23.8B, with leverage dropping to 7:1 drom 7.9:1. Company bought back below-book value shares with some of the cash, repurchasing 1.3M at an average price of $16.91.
  • CC at 10 ET
  • Press release, Q4 results
  • HTS no trades premarket

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