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Not worried about QE3 and prepayment risk as much as one might expect, American Capital (AGNC)...

Not worried about QE3 and prepayment risk as much as one might expect, American Capital (AGNC) CIO Gary Kain notes (transcript) 70% of his company's holdings are backed by lower loan balance mortgages. With mortgage origination operations running at full capacity, a $100K refinance is going to get pushed to the back of the line. "You really need ... 150 or more basis points of incentive ... then you start to see (lower loan balance refis) pick up."
Comments (7)
  • Mike Maher
    , contributor
    Comments (2428) | Send Message
     
    He's been the best in the industry thus far, I'm staying with this winner.
    18 Sep 2012, 11:18 PM Reply Like
  • kingdad
    , contributor
    Comments (803) | Send Message
     
    Read the original article It was Good.
    Only time will tell how all these things will play out.
    But in the interim, I do so enjoy those sweet double digit mReits Dividends.
    19 Sep 2012, 04:26 AM Reply Like
  • MexCom
    , contributor
    Comments (3043) | Send Message
     
    The manager of the fund is "not worried." Why does he have to say that? That is a tell that yes, there are plenty of people who are worried.
    19 Sep 2012, 05:49 AM Reply Like
  • TwistTie
    , contributor
    Comments (2477) | Send Message
     
    Gary has to tell us that he is "not worried" because if he didn't do so, we might think otherwise.

     

    I worry enough for two people, so maybe he is using that to his advantage.

     

    I don't mind worrying, I'm just worried that I'm not worried enough.
    19 Sep 2012, 10:58 AM Reply Like
  • brucepeckham
    , contributor
    Comments (8) | Send Message
     
    I agree with Mike and will stick with Gary. Look at their returns over the last couple of years. I am long AGNC and sold NLY a while back because they just can't keep up (levered lower, more conservative, etc.). I am looking at TWO now as they may the second best....
    20 Sep 2012, 05:00 AM Reply Like
  • brucepeckham
    , contributor
    Comments (8) | Send Message
     
    Part-Time, Long-term Investor who believes in Diverisfication. I am long COP, MO, MRK, DISH, and of course AGNC.
    20 Sep 2012, 05:00 AM Reply Like
  • BilfordWrimley
    , contributor
    Comments (6) | Send Message
     
    Maybe I'll add my picture if you ever post one of my comments. Besides, what does physical appearance have to do with any of this? Maybe I'm too old for the society as it stands.This "new" American culture is so wrapped up in appearance and political correctness that I just have to laugh.
    22 Sep 2012, 03:41 PM Reply Like
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