Mortgage REIT fans will be interested in this transcript of a roundtable yesterday led by JPMorgan analyst Matt Jozoff, and including executives from Apollo Residential (AMTG -1.9%), Annaly (NLY -2.4%), MFA Financial, Invesco (IVR -2.5%), and Two Harbors (TWO -1.6%). At a minimum, it makes clear - for those who would lump the sector together - the significant differences in investment approaches and assets held.
As tipped off during his company's earnings call a few days back, David Finkelstein - head of agency MBS trading at Annaly - sounds the most bullish: "Technicals over the near-term are relatively supportive of MBS, and we also believe that even beyond the Fed’s departure from being a - or from adding to their portfolio, we think that the landscape will still be favorable to MBS due to relatively low volatility the fact that we will not have a significant portion of the MBS market actively hedging their portfolio, which should reduce volatility day to day."
MFA CEO William Gorin doesn't want any part of long-dated agency MBS: "We came into the year owning zero 30-year agency paper ... which we are happy with. When you are competing with a non economic, non profit maximizing competitor in the space [the Fed] ... we’ve decided not to be in that space."