Hatteras Financial Corp.(HTS)- NYSE
  • Fri, Jan. 15, 10:23 AM
    • In the midst of a market panic and with the sector trading at massive discounts to book value, it takes a pair to issue downgrades now, but that's what Wells Fargo has done, cutting Annaly Capital (NLY -2.9%), MFA Financial (MFA -4.1%), Hatteras Financial (HTS -4.5%), American Capital Mortgage (MTGE -5%), AG Mortgage (MITT -5.9%), and Two Harbors (TWO -3.4%) to Market Perform from Outperform.
    • At last check one month ago, these names were trading at discounts to NAV ranging from about 10-30%. Presumably those discounts have widened as the stock prices have crumbled further since then, and book values have likely remained stable or even risen.
    • For the last year, mREITs have had to contend with the possibility of higher interest rates across the board. Now they have to deal with a sharply flatter yield curve as the 10-year Treasury yield has fallen about 30 basis points since the Fed hiked last month.
    • Good news? FRBNY President Bill Dudley is on the tape this morning suggesting negative interest rates as a possibility if the economy sours. That should help mREIT funding costs.
    • ETFs: MORL, REM, MORT, LMBS
    | Fri, Jan. 15, 10:23 AM | 58 Comments
  • Wed, Jan. 13, 1:14 PM
    • It wasn't supposed to be this way after the Fed embarked on a rate hike cycle as these yield-starved names could finally look forward to earning a better spread on their money.
    • Since the Fed hiked last month, however, the long bond yield has tumbled about 20 basis points, further narrowing the yield curve.
    • With today's 1.3% decline, the XLF is lower by 7.6% YTD, about 200 basis points worse than the S&P 500 (but about 250 basis points better than the energy sector).
    • TBTFs: Morgan Stanley (MS -3.9%), Goldman Sachs (GS -2.3%), Citigroup (C -1.8%)
    • Regionals: U.S. Bancorp (USB -2%), Regions Financial (RF -3.4%), New York Community Bancorp (NYCB -2.2%)
    • Mortgage-related names like Ocwen (OCN -6.2%), Nationstar (NSM -5.3%), Walter Investment (WAC -13.9%), and New Residential (NRZ -5.3%) have come in for particular punishment this day and this year. The mortgage REITs too: Hatteras Financial (HTS -4.4%), Western Asset (WMC -3.6%), New York Mortgage (NYMT -2.3%), Five Oaks (OAKS -5.2%), PennyMac (PMT -2.6%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
    | Wed, Jan. 13, 1:14 PM | 47 Comments
  • Tue, Jan. 12, 3:17 PM
    • The 10-year Treasury yield is off eight basis points on the session at 2.10%, and now lower by about 20 basis points since the Fed Funds rate got hiked 25 basis points less than a month ago - probably not the best scenario for mREIT earnings going forward.
    • Other income favorites like equity REITs, BDCs, and utilities (XLU -0.8%) are also being aggressively sold today.
    • Annaly Capital (NLY -1.8%), American Capital Agency (AGNC -1.7%), Armour Residential (ARR -2.4%), Two Harbors (TWO -2%), CYS Investments (CYS -1.9%), Invesco (IVR -2.3%), New York Mortgage (NYMT -2.3%), Hatteras (HTS -3.2%), Capstead (CMO -3.6%), Western Asset (WMC -2.9%), Apollo Residential (AMTG -3.6%), Dynex (DX -3.1%), Ellington Residential (EARN -3.5%), AG Mortgage (MITT -3.2%), PennyMac (PMT -4.9%), FIve Oaks (OAKS -5.7%)
    • ETFs: MORL, REM, MORT, LMBS
    | Tue, Jan. 12, 3:17 PM | 24 Comments
  • Wed, Jan. 6, 3:28 PM
    • Trading at roughly a 25% discount to book value, there's plenty of value in the mortgage REIT sector, and now there's a catalyst with the broad-based averages and interest rates both in sharp decline to start the year.
    • The iShares FTSE NAREIT Mortgage REIT ETF (NYSEARCA:REM) is up 2.2% YTD after declining about 20% in 2015.
    • Annaly Capital (NYSE:NLY) and American Capital Agency are each up about 2.5%.
    • Others in the green: Two Harbors (NYSE:TWO), Chimera (NYSE:CIM), CYS Investments (NYSE:CYS), Invesco (NYSE:IVR), New York Mortgage Trust (NASDAQ:NYMT), Hatteras (NYSE:HTS), Capstead (NYSE:CMO), MFA Financial (NYSE:MFA), Western Asset (NYSE:WMC), Anworth (NYSE:ANH).
    • ETFs: MORL, REM, MORT, LMBS
    | Wed, Jan. 6, 3:28 PM | 35 Comments
  • Dec. 23, 2015, 12:48 PM
    • A check of discounts/premiums to book for many of the names in the mortgage REIT sector finds discounts have mostly widened significantly over the past year.
    • Among the notable items: Just two names sold at premiums to book a year ago. New York Mortgage (NASDAQ:NYMT) trust at 11.6% and Capstead Mortgage (NYSE:CMO) at 1.3%. While book value has barely budged at NYMT over the past year, the price investors are willing to pay has - it now trades at a 17.6% discount. Capstead has shed about 5% of its book value, but now trades at a 22.66% discount.
    • Sector giants Annaly Capital (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC) still trade at sizable discounts to book, with AGNC's widening to 20.65% from 12.7% a year ago.
    • Chimera Investment (NYSE:CIM) trades at just a 4.12% discount to book - that's less than its 4.9% discount a year ago. Book value however, slid 12.7% over the last 52 weeks.
    • Others covered: ARR, TWO, IVR, CYS, HTS, MTGE, AMTG, ANH, MITT, DX, WMC, MFA, EARN, AI, CHMI, ORC, OAKS, ZFC
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 23, 2015, 12:48 PM | 21 Comments
  • Dec. 8, 2015, 4:34 PM
    • Hatteras Financial (NYSE:HTS) declares $0.45/share quarterly dividend, in line with previous.
    • Forward yield 13.24%
    • Payable Jan. 22; for shareholders of record Dec. 18; ex-div Dec. 16.
    | Dec. 8, 2015, 4:34 PM
  • Nov. 24, 2015, 11:46 AM
    • ""Our Buy rating was predicated on several macro factors that are no longer present," says analyst Brock Vandervliet, downgrading Hatteras (HTS -0.6%) to Hold, with price target cut to $16 from $19 (current price is $14).
    • He also notes company-specific factors like lower earnings power and management's resistance to buying back stock.
    • "Finally, we had expected HTS’s book value performance to be superior to peers but it has not been."
    • The downgrade comes with the stock trading at a 29% discount to Sept. 30 book value. Hatteras is lower by 24% YTD.
    | Nov. 24, 2015, 11:46 AM | 6 Comments
  • Oct. 28, 2015, 10:21 AM
    | Oct. 28, 2015, 10:21 AM
  • Oct. 27, 2015, 4:38 PM
    • Q3 core EPS of $0.45 vs. $0.50 in Q2. Dividend of $0.45.
    • The drop in earnings comes as the value of company hedges fell far further than the value of investments rose.
    • Book value per share of $19.69 down from $21.06. Today's close of $15.20 is a 22.8% discount to book. The $1.37 decline in book value plus the $0.45 dividend means negative economic return for the quarter.
    • Effective NIM of 0.80% down six basis points. CPR of 21.1 rises from 19.5.
    • Purchase of Pingora Asset Management closed during quarter, and company purchased $171M of MSR on conforming loans from Pingora's flow purchase partners.
    • Conference call tomorrow at 10 ET
    • Previously: Hatteras Financial reports Q3 results (Oct. 27)
    • HTS flat after hours
    | Oct. 27, 2015, 4:38 PM | 1 Comment
  • Oct. 27, 2015, 4:32 PM
    • Hatteras Financial (NYSE:HTS): Q3 EPS of $0.45
    • Net interest income of $51.74M (+4.8% Y/Y)
    | Oct. 27, 2015, 4:32 PM
  • Oct. 27, 2015, 3:34 PM
    | Oct. 27, 2015, 3:34 PM | 11 Comments
  • Oct. 26, 2015, 5:35 PM
  • Oct. 7, 2015, 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.
    • ETFs: MORL, REM, MORT, LMBS
    | Oct. 7, 2015, 11:15 AM | 27 Comments
  • Sep. 21, 2015, 12:32 PM
    • After averaging 15.4% in Q1 and 19.4% in Q2, CPRs have risen to an average of 21% so far in Q3, says Hatteras (HTS +1.6%), presenting at the JMP financial services and real estate conference.
    • The company takes note of its Onslow Bay platform, with $383M of originations and commitments as of June 30. A possible securitization could com as soon as November (market-dependent, of course).
    • Hatteras' entry into the MSR market with the purchase of Pingora Asset Management is expected to yield in the double digits.
    • Presentation slides
    | Sep. 21, 2015, 12:32 PM
  • Sep. 16, 2015, 9:43 AM
    • Hatteras Financial (HTS +0.3%) is in the green after last night cutting its quarterly payout by 10% to $0.45 per share. The forward yield drops to 11.3% from 12.6%.
    • Ellington Residential (EARN +0.1%) is also ahead after slashing its dividend 18.2% to $0.45 per share, bringing the forward yield to 13.85% from nearly 17%.
    • Can anybody say, "priced in?" Both Hatteras and Ellington trade at near-25% discounts to their June 30 book values.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 16, 2015, 9:43 AM | 18 Comments
  • Sep. 15, 2015, 4:05 PM
    • Hatteras Financial (NYSE:HTS) declares $0.45/share quarterly dividend, -10% decrease from prior dividend of $0.50.
    • Forward yield 11.32%
    • Payable Oct. 23; for shareholders of record Sept. 25; ex-div Sept. 23.
    | Sep. 15, 2015, 4:05 PM
Company Description
Hatteras Financial Corp. is an externally-managed mortgage real estate investment trust. It owns and manages a portfolio of residential mortgage investments, primarily in residential mortgage securities with a focus on those secured by adjustable-rate mortgage loans on single-family residences.... More
Sector: Financial
Industry: REIT - Residential
Country: United States