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Mortgage REIT owners shouldn't take any comfort from recent downticks in mortgage refinance...

Mortgage REIT owners shouldn't take any comfort from recent downticks in mortgage refinance activity, says American Capital Agency CEO Gary Kain on the earnings call. Interest rates ticked up a bit and mortgage companies have capacity issues, but don't expect either to last. He again points out, AGNC's concentration on low balance mortgages protects it somewhat from prepayment risk.
Comments (2)
  • Bottom line "between the lines", I would expect a decrease in the dividend by 100-200 bps in the next Q or 2.
    1 Nov 2012, 09:31 AM Reply Like
  • Whatever happens, at least they aren't going bankrupt.
    1 Nov 2012, 10:47 AM Reply Like
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