Arlington Asset -4% as Q4 whacks book value

• Q4 core operating income of $14.9M or $0.64 per share vs. $0.64 earned in Q3. Dividend is $0.625.
• Book value per share of $16.21 down from $18.83 at end of Q3. Yesterday's close of $15.27 is a now narrow 5.8% discount to Dec. 31 book. Tangible book value per share of $13.11 down from $14.63 at end of Q3.
• Negative economic return of about $2 per share for the quarter, or roughly 42% on an annualized basis (based on end of Q3 book value).
• Management takes note of the rapid rise in rates and volatility leading to MBS spread widening, with hedges not nearly able to make up for hit to the portfolio.
• Earnings call presentation slides
• Previously: Arlington Asset Investment misses by $0.01 (Feb. 7)
• AI -4.05%