More on Hatteras (HTS) Q3 earnings: Net interest margin of 1.22%, off from 1.49% in Q2 (yikes)....

|About: Hatteras Financial Corp. (HTS)|By:, SA News Editor

More on Hatteras (HTS) Q3 earnings: Net interest margin of 1.22%, off from 1.49% in Q2 (yikes). The decline comes solely from lower yields on MBS as cost of funds remained constant. The flip side of lower yields are higher marks on the company's assets, and the resultant big jump in book value/share to $29.60. This gives the company the opportunity to sell MBS to maintain the dividend or to buy back shares below book. Constant prepayment rate (CPR) of 20.5 vs. 19.7 at Q2's end. (PR)