- Our proprietary model projects net income attributable to common shareholders in Q2 to be $13.485 million, assuming amortization charges of $11 million.
- Anworth invests in 15-year agency MBSs and agency ARM MBSs. The increased use of hedges may be limiting returns to common stockholders by reducing the net interest margin.
- The 15-year MBSs are carried at an amortized premium to par value. NPV analysis indicates the cash flows discounted at spot rates may be worth less than recorded value.
- Anworth has recently undertaken a plan to invest in single-family homes.
- There may be significant agency costs resulting from a conflict of interest.