AG Mortgage downgraded on valuation at KBW

• "We believe there's a limit to the spread of those valuation disparities and we're probably about there," says KBW, pulling its Outperform rating on AG Mortgage Investment (MITT -0.6%). What the team is referring to is AG trading at just a 4% discount to book vs. discounts in the 20% area for much of the rest of the mREIT sector.
• While this premium has arguably been "earned" thanks to more stable returns, says KBW, it's probably not going to get any wider.