Hatteras not a fan of Kain strategy

|By:, SA News Editor

Perhaps taking a dig at American Capital's (AGNC +0.3%), (MTGE +1.4%) Gary Kain, Hatteras (HTS +2.3%) management - speaking on the earnings call - says it's not buying up any shares of other mortgage REITs because it would then lose control of the hedging.

Kain (actually the two mREITs of which he is CIO), of course, is now an owner of Hatteras, disclosing last week an 8.5% stake in the company amid his decision to buy up the common stock of agency REITs while they're trading at significant discounts to book value.

Earlier: Interest margins on the rise at Hatteras as prepayments slide.