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Asked on the earnings call if a large increase in hedging activity is a sign the company...

Asked on the earnings call if a large increase in hedging activity is a sign the company believes interest rates are set to rise, American Capital (AGNC +1.4%) CIO Gary Kain says not necessarily. The Fed's iron grip on the yield curve has driven bond volatility so low and made hedging so cheap, it doesn't make sense not to hedge - it's a nearly-free call on the chance of higher rates. This just in: Gary Kain knows his business.
Comments (3)
  • Mike Maher
    , contributor
    Comments (2732) | Send Message
     
    He's the best manager in the business, thats for sure.
    8 Feb 2013, 10:20 AM Reply Like
  • Taylorinsmaria
    , contributor
    Comments (6) | Send Message
     
    Well I learned a new term today "TBA Dollar roll".
    8 Feb 2013, 01:06 PM Reply Like
  • shakenbake2011
    , contributor
    Comments (74) | Send Message
     
    Gary "Coke" Kain is the man! Guy swaps rates like your mom swaps hair pieces.
    8 Feb 2013, 01:50 PM Reply Like
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