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Arlington Asset Investment Corporation (AI)

  • Wed, Oct. 7, 11:15 AM
    • So roughed up are the mortgage REITS (REM +0.7%), that what's now a six-day rally in the sector is little more than a blip on the longer-term chart.
    • There's no particular news today, but with much of the sector trading at somewhere in the area of a 15-20% or even higher discounts to book value, even the worst scenario on interest rates may be more than priced in.
    • Leading the way higher today are Ellington Residential (EARN +4.3%), Javelin Mortgage (JMI +3.4%), Arlington Asset (though not a REIT) (AI +2.3%), Dynex Capital (DX +0.9%), Apollo Residential (AMTG +1.2%), PennyMac Mortgage (PMT +1%), Cherry Hill Mortgage (CHMI +1.2%), Hatteras Financial (HTS +0.5%), Two Harbors (TWO +0.8%). The action in Annaly Capital (NLY) and American Capital Agency (AGNC -0.3%) is more subdued.
    | Wed, Oct. 7, 11:15 AM | 25 Comments
  • Mon, Sep. 28, 12:24 PM
    • It's a big ex-dividend day for the mortgage REIT sector, but the stocks of payers like Ellington Residential (EARN -6.2%), Arlington Asset (AI -10.4%), Western Asset (WMC -4.9%), Two Harbors (TWO -5.7%), Chimera Investment (CIM -7.3%), New York Mortgage (NYMT -6.9%), American Capital Agency (AGNC -3.2%), and Annaly Capital (NLY -4.8%),  are down far more than their payout amounts.
    • The above declines include the dividends being paid, so are higher than actual.
    • Others like Armour Residential (ARR -2.9%), Javelin Mortgage (JMI -4.2%), Five Oaks (OAKS -5.9%), AG Mortgage (MITT -3.4%), and Invesco (IVR -4.2%) are just down.
    • The decline comes as another Fed head all but promises a rate hike this year, and the 10-year Treasury yield falls back six basis points to 2.10%. Thirty-day Fed Fund futures are pricing in just less than a 50% chance of a 25 basis point rate hike in 2015.
    | Mon, Sep. 28, 12:24 PM | 72 Comments
  • Fri, Sep. 18, 11:19 AM
    • Annaly Capital (NLY +0.9%), Anworth Mortgage (ANH +0.6%), Apollo Residential (AMTG +0.1%) and ZAIS Financial (ZFC +0.8%) last night added themselves to the smallish list of mortgage REITs maintaining dividends this quarter.
    • Those announcing dividend cuts after the bell were American Capital Mortgage (MTGE -1.2%) and Arlington Asset (AI -0.5%).
    • The sector as a whole continues to move higher following the FOMC yesterday afternoon, but hit particularly hard today is CYS Investment (CYS -3.1%). The move is especially notable as CEO Kevin Grant has been consistently skeptical about fears of higher rates.
    | Fri, Sep. 18, 11:19 AM | 31 Comments
  • Fri, Aug. 21, 3:30 PM
    • These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
    • Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
    • Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
    • Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
    • Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
    | Fri, Aug. 21, 3:30 PM | 38 Comments
  • Wed, Jul. 29, 9:54 AM
    • Arlington Asset Management (NYSE:AI) reported a rough Q2 on Monday night, but investors used the news to buy the badly beaten-down stock yesterday.
    • Shares have given back those gains today as Ladenburg Thalmann throws in the towel on its Buy rating and downgrades to Neutral.
    • AI is lower by 3.25% in early action, and off about 30% year-to-date.
    • Previously: Arlington Asset discount to book value widens (July 28)
    | Wed, Jul. 29, 9:54 AM | 3 Comments
  • Fri, Jul. 24, 3:01 PM
    • Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
    • Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
    • Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
    • Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
    | Fri, Jul. 24, 3:01 PM | 82 Comments
  • Thu, Jul. 23, 1:17 PM
    • CYS Investments last night reported a big drop in book value as the effect of sharply higher rates more than offset the company's hedges. Core income failed to cover the dividend as prepayments also rose.
    • The stock today is down 2.6% and trading at more than a 20% discount to book value.
    • Earlier this week, Hatteras also reported a decline in income and fall in book value.
    • Sector giants Annaly Capital (NLY -0.5%) and American Capital Agency (AGNC -0.7%) are performing the best today. Armour Residential (ARR -1.8%), Chimera Investment (CIM -0.8%), Invesco Mortgage (IVR -1.1%), New York Mortgage (NYMT -1.2%), Western Asset Mortgage (WMC -1%), Anworth Mortgage (ANH -1.2%), Arlington Asset (AI -2.3%), Ellington Residential (EARN -2.1%), Dynex Capital (DX -0.8%)
    | Thu, Jul. 23, 1:17 PM | 32 Comments
  • Mon, Jun. 29, 11:24 AM
    • The smallest players are being hit hardest today, with Orchid Island Capital (ORC -8.9%), Five Oaks Investment (OAKS -3.4%), and Cherry Hill Mortgage <<CHM>I> leading the sector lower. Arlington Asset (AI -1.3%), Apollo Residential (AMTG -1.2%), and Javelin Mortgage (JMI -0.8%) belong in that group as well.
    • Sector bigwigs Annaly Capital (NLY -0.1%), American Capital Agency (AGNC -0.1%), Two Harbors (TWO -0.2%),and  MFA Financial (MFA -0.3%) are holding up better.
    • Previously: Rates plunge on Greece gets ready to default (June 29)
    | Mon, Jun. 29, 11:24 AM | 46 Comments
  • Thu, Apr. 30, 3:15 PM
    • A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
    • Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
    • Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
    | Thu, Apr. 30, 3:15 PM | 43 Comments
  • Wed, Feb. 4, 1:25 PM
    • End-of-year book value per share of $27.95 is down from $30.43 at the end of Q3 and from $33.10 one year ago.
    • While core income was $32.6M during Q4, the company had a GAAP loss of $32.8M, including a $38M net realized and unrealized loss on trading MBS and hedge instruments. There's also a $27M non-cash charge for income tax provisions.
    • AI -9.6%
    | Wed, Feb. 4, 1:25 PM | 4 Comments
  • Sep. 30, 2014, 3:05 PM
    | Sep. 30, 2014, 3:05 PM | 32 Comments
  • Sep. 4, 2014, 8:58 AM
    • The 2.75M share offering was priced at $27.61 each. The underwriter greenshoe is for another 412.5K shares.
    • Source: Press Release
    • AI -4% premarket to $27.26
    | Sep. 4, 2014, 8:58 AM | 5 Comments
  • Jul. 30, 2014, 7:49 AM
    • Core operating income of $24.4M or $1.22 per share. Dividend of $0.875. Proceeds from the March capital raise were fully deployed by mid-May and boosted results, as did continued gains in AI's private-label MBS portfolio.
    • Private-label portfolio fair market value of $314.1B is 74.1% of face value. The quarterly cash yield as a percent of fair market value is 3.6% and the quarterly unlevered yield as a percent of amortized cost is 10.4%. The CPR is 11.3%.
    • Book value per share of $31.51u p from $33.10 at the start of the year.
    • Previously: Arlington Asset Investment beats by $0.16, beats on revenue
    • Shares +2.5% premarket
    | Jul. 30, 2014, 7:49 AM | 2 Comments
  • Apr. 29, 2014, 7:34 AM
    • Core operating income of $20.1M or $1.18 per share. Net interest income of $21.6M vs. $16.7M one year ago. CPR of 6%. Leverage of about 3:1. Dividend was $0.875 per share. Book value per share of $31.50 vs. $33.10 one year ago.
    • Agency MBS portfolio of $1.9B face value. All are fixed-rate 30-year mortgages with average coupon of 4.06%, weighted average cost of 106.82, weighted average market price of 104.38, and weighted average cost of repo funding of 34 basis points. Thus far in April, company has purchased another $500M in face value of additional MBS.
    • Private-label MBS portfolio of $458.6M in face value, and fair value of $329.8M (71.9% of face). Unlevered yield as a percent of amortized cost is 10.2%.
    • AI +1.8% premarket
    • Source: Press Release
    • Previously: Arlington Asset Investment beats by $0.25
    | Apr. 29, 2014, 7:34 AM | Comment!
  • Mar. 25, 2014, 9:54 AM
    • Arlington Asset Investment (AI -4.3%) prices its 2.75M share secondary offering at $27.40 each. The stock's current trading price is $27.23.
    • Press release
    | Mar. 25, 2014, 9:54 AM | Comment!
  • Mar. 24, 2014, 5:35 PM
    • Top gainers, as of 5:15 p.m.: SONC +7.1%. RLD +5.9%. UQM +4.4%. GFI +2.1%. EOG +1.7%.
    • Top losers, as of 5:15 p.m.: VNDA -3.6%. AI -3.4%. UVE -3.3%. SUNE -2.0%. NFLX -1.9%.
    | Mar. 24, 2014, 5:35 PM | Comment!
Company Description
Arlington Asset Investment Corp., is an investment firm that acquires & holds mortgage-related and other assets. Its portfolio consists of agency-backed mortgage-backed securities & private-label residential mortgage-backed securities.