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


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)

Comments (2)
  • MexCom
    , contributor
    Comments (3069) | Send Message
     
    In a tail spin. I got out before the crash. The spread is declining and could go negative if REPO credit rates increase.
    24 Oct 2012, 06:42 AM Reply Like
  • Pinkrabbit
    , contributor
    Comments (198) | Send Message
     
    Up 1.53% today. Hope you didn't sell in the Pre-market.

     

    This too shall pass.
    24 Oct 2012, 12:47 PM Reply Like
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