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More on Western Asset Management (WMC) Q3 earnings: Book value/share of $21.76 is below the...

More on Western Asset Management (WMC) Q3 earnings: Book value/share of $21.76 is below the Sept. 14 update of $22.68, but 7.9% higher than Q2. Net interest spread of 2% vs. 2.45% in Q2. CPR of 4.1% vs. 5.7% during Q2's final month. "In spite of the impact" of QE3, the company remains optimistic it can find places to invest and has taken advantage of lower volatility to increase leverage to 8.5X from 8.3X (some other mREITs are taking caution). (PR)
Comments (4)
  • laterre
    , contributor
    Comments (368) | Send Message
     
    Talking my own book here, but these are blowout numbers: spreads, CPRs, etc look fantastic on a going-forward basis... This is how you do it when you're new, nimble, and still small enough to maneuver.
    9 Nov 2012, 08:46 AM Reply Like
  • TimjBaker
    , contributor
    Comments (40) | Send Message
     
    I could agree more laterre. The BV decline they cite makes perfect sense in that they did a secondary just after making that announcement. That said, it was done at 22.20, so I will be looking for some walk through on BV at the earnings call. It should not have dropped below $22. I hope they consider moving more into non-agencies as well.
    9 Nov 2012, 09:09 AM Reply Like
  • REIT Analyst
    , contributor
    Comments (474) | Send Message
     
    They definitely have the expertise to do non-agencies (Wamco). And better than most, I think.
    9 Nov 2012, 02:40 PM Reply Like
  • Patrick Harden
    , contributor
    Comments (427) | Send Message
     
    Part of the drop in the Sept. 30 book value versus Sept. 14 is due to the third quarter $0.85/share dividend.
    9 Nov 2012, 06:35 PM Reply Like
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