American Capital +1.3% after reporting a big Q2

|By:, SA News Editor

Net spread and dollar roll income of $0.87 per share compares $0.71 in Q1, and to the $0.65 dividend.

Book value per share of $26.26 up 7.2% from June 30 book value of $24.49. Today's close of $23.69 is a 9.8% discount to book. Dividend plus boost in book value translates to 9.9% economic ROE for Q2.

CPR of 9% up 200 basis points from Q1.

Net interest spread of 1.84% up 25 basis points from Q1.

Average "at risk" leverage of 7.1x vs. 7.2x in Q1.

CIO Kain takes a victory lap: "Our results this quarter were bolstered by several important strategic decisions ... Most important was our decision to maintain our leverage as we believed the supply and demand outlook for agency MBS was very positive despite the tapering of Fed purchases."

Conference call tomorrow at 11 ET

AGNC +1.3% AH

Previously: American Capital Agency beats by $0.19