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MFA Financial, Inc. (MFA)

  • Jul. 3, 2014, 9:56 AM
    • A few days ago, the 10-year Treasury yield stood at about 2.50%, but it's been on the rise all week and shot up to near 2.7% this morning following the strong jobs print and drop in unemployment to 6.1%. Checking the short end of the curve, Eurodollar futures are selling off as well, and now have baked in more than one rate hike between now and one year from now, and 75 basis points of hikes by the end of 2015.
    • Previously: Treasury yields jump, gold slumps after strong jobs print
    • Off 1.1% today, Annaly Capital (NLY) is down nearly 5% since this time last week, with a similar move having taken place in American Capital Agency (AGNC -1.2%).
    • Chimera (CIM -1.4%), CYS Investments (CYS -1%), Invesco Mortgage (IVR -1.8%), American Capital Mortgage (MTGE -1.6%), New York Mortgage Trust (NYMT -1.2%), AG Mortgage (MITT -1.8%), Ellington Residential (EARN -0.7%), Dynex (DX -0.8%), MFA Financial (MFA -0.9%).
  • Jun. 13, 2014, 10:20 AM
    • MFA Financial (MFA) declares $0.20/share quarterly dividend, in line with prior.
    • Forward yield 9.60%.
    • Payable July 31; for shareholders of record June 27; ex-div June 25.
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  • May. 1, 2014, 8:21 AM
    • Net income of $72.4M or $0.20 per share is inline with the dividend. Book value per share of $8.20 rises from $8.06 after the payment of the $0.20 dividend. Last night's close of $7.93 is a 3.3% discount to book.
    • Wide range of asset choices allowed management to boost yield on assets to 4.32% while cutting estimated effective duration to 0.83. Leverage remains at 2.9:1.
    • Average LTV of mortgages underlying non-agency holdings is down to 82% (was 105% two years ago). Current loans underwater falls to 16% (was 52% two years ago). As a result MFA transfers another $35.9M from credit reserve to accretable discount, allowing boosted interest income over the life of the non-agency paper.
    • Portfolio CPR of 11.71% falls from 13.42% in Q4.
    • CC at 10 ET
    • Source: Press Release
    • Previously: MFA Financial beats by $0.01, misses on revenue
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  • May. 1, 2014, 8:06 AM
    • MFA Financial (MFA): Q1 EPS of $0.20 beats by $0.01.
    • Revenue of $80.25M (-2.8% Y/Y) misses by $0.85M.
    • Press Release
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  • Apr. 25, 2014, 4:43 AM
    • The amount that lenders originated in mortgage loans plunged 58% on year Q1 to a 14-year low of $235B, almost entirely due to drop in refinancing. The figures are from industry newsletter Inside Mortgage Finance.
    • Loans for acquisitions were flat on year and lower than in Q4.
    • The trend is the latest indication that increasing interest rates are hampering the housing recovery. The average 30-year fixed-rate mortgage was 4.5% last week, up from 3.6% in May last year, when rates spiked after the Fed indicated it would scale back its QE program.
  • Apr. 24, 2014, 10:36 AM
    • A check of the mortgage REITs (REM +0.1%) finds not a lot going on stock price-wise following the first Q1 earnings reports from the sector this week (CYS Investments and Hatteras). As expected, book values grew and prepayments remained at a low level.
    • Perhaps unexpected was a good deal of caution from CYS management about mortgage prices - right now, it's finding better value in Treasurys, and awaits a pullback in MBS prices before boosting those holdings. "The mortgage market is a little kid playing with matches," said CEO Kevin Grant on the earnings call (transcript). "We just don't know when everybody's fingers are going to get burnt. The traders that play in this market, they know this and they know they are playing with matches."
    • Amid the low supply of MBS out there, Hatteras (HTS +0.1%) management on its call (transcript) says it now has 10 originators delivering wholesale product to the company covering more than half of monthly cash flow needs. Up next is expansion into jumbo ARMs.
    • Other sector ETFs: MORT, MORL
    • Individual names: Annaly (NLY +0.6%), American Capital (AGNC +0.7%), (MTGE +0.2%), Armour (ARR +0.1%), Two Harbors (TWO -0.6%), Invesco (IVR -0.1%), Capstead (CMO +0.3%), MFA Financial (MFA +0.1%), Western Asset (WMC +0.5%).
  • Apr. 10, 2014, 11:49 AM
    • Lit up bright green as the market's momentum names again break down and lead the averages - and Treasury yields - lower are the mortgage REITs (REM +0.5%).
    • The 10-year yield is off six basis points to 2.63% and Eurodollar futures in the last few sessions have rallied strongly, pricing out at least one rate hike between now and the end of 2016.
    • CYS Investments (CYS +1.7%), Invesco Mortgage (IVR +1.3%), Hatteras Financial (HTS +1.3%), MFA Financial (MFA +1.4%), Two Harbors (TWO +0.8%), American Capital (AGNC +0.6%), (MTGE +0.5%).
    • One day after making a number of additions to its management team - including a couple of hires from the New York Fed - Annaly (NLY +0.5%) is also posting gains.
    • Related ETFs: MORT, MORL
    | 1 Comment
  • Apr. 4, 2014, 3:15 PM
    • What's working today? With the exception of Western Asset Mortgage which had a massive secondary offering, the mREIT sector is nearly universally higher as money rushes out of the previously perkier areas of the market.
    • Not hurting is a seven basis point decline in the 10-year Treasury yield to 2.73%.
    • Up the most are the two largest and also investor favorites Annaly (NLY +1.4%) and American Capital Agency (AGNC +1.3%). Others: CYS Investments (CYS +1%), American Capital Mortgage (MTGE +0.5%), MFA Financial (MFA +0.5%), Dynex (DX +0.9%), Armour (ARR +0.5%).
    • Related ETFs: REM, MORT, MORL
  • Mar. 19, 2014, 3:13 PM
    • A check of sectors following the FOMC statement and updated projections suggesting a quickened pace of rate hikes in the future finds the banks and life insurers notably moving higher. Both groups have struggled earning a spread amid ZIRP and are positively levered to higher rates.
    • Lenders: Bank of America (BAC +1%), Citigroup (C +1%), JPMorgan (JPM), Regions (RF +1.7%), KeyCorp (KEY +0.9%), SunTrust (STI +0.7%).
    • Life insurers: MetLife (MET +1%), Prudential (PRU +0.7%), Lincoln National (LNC +1%).
    • Not necessarily positively levered to higher rates are the mortgage REITs (REM -1.6%): Annaly (NLY -1.8%), American Capital (AGNC -1.7%), (MTGE -1.9%), Armour (ARR -1.3%), Two Harbors (TWO -2%) CYS Investments (CYS -3.3%), Capstead (CMO -1.3%), MFA (MFA -1.8%).
    • Related ETFs: MORT, MORL
  • Mar. 10, 2014, 9:16 AM
    • MFA Financial, Inc. (MFA) declares $0.20/share quarterly dividend, in line with previous.
    • Forward yield 10.39%
    • Payable April 30; for shareholders of record March 28; ex-div March 26.
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  • Mar. 7, 2014, 2:51 PM
    • Mortgage REIT fans will be interested in this transcript of a roundtable yesterday led by JPMorgan analyst Matt Jozoff, and including executives from Apollo Residential (AMTG -1.9%), Annaly (NLY -2.4%), MFA Financial, Invesco (IVR -2.5%), and Two Harbors (TWO -1.6%). At a minimum, it makes clear - for those who would lump the sector together - the significant differences in investment approaches and assets held.
    • As tipped off during his company's earnings call a few days back, David Finkelstein - head of agency MBS trading at Annaly - sounds the most bullish: "Technicals over the near-term are relatively supportive of MBS, and we also believe that even beyond the Fed’s departure from being a - or from adding to their portfolio, we think that the landscape will still be favorable to MBS due to relatively low volatility the fact that we will not have a significant portion of the MBS market actively hedging their portfolio, which should reduce volatility day to day."
    • MFA CEO William Gorin doesn't want any part of long-dated agency MBS: "We came into the year owning zero 30-year agency paper ... which we are happy with. When you are competing with a non economic, non profit maximizing competitor in the space [the Fed] ... we’ve decided not to be in that space."
    • Related ETFs: REM, MORT, MORL
  • Mar. 7, 2014, 12:46 PM
    • The mortgage REITs are maybe the poorest performing sector amid a big move higher in interest rates, and formerly bullish Deutsche Bank ringing the register on New York Mortgage Trust, CYS Investments, and American Capital Mortgage after nice runs for all have pulled them close to (or above in NYMT's case) book value.
    • There's also an earnings miss this morning from one of the last of the players to report Q4, Western Asset Mortgage.
    • Annaly (NLY -2.1%), American Capital Agency (AGNC -2.3%), Armour (ARR -1.4%), Two Harbors (TWO -1.8%), Invesco (IVR -2.7%), Capstead (CMO -1.2%), MFA Financial (MFA -2%), Apollo Residential (AMTG -1.7%)
  • Feb. 13, 2014, 8:17 AM
    • Book value per share of $8.06 gains 2.7% from the end of Q3 thanks to price appreciation on the company's holdings of non-agency MBS. Yesterday's close of $7.47 is a 7.3% discount to book.
    • Net interest spread of 2.34% gains 10 basis points from Q3. Loss-adjusted yield on non-agency holdings of 7.77% gains 44 bps from Q3 as company transfers $47.2M from credit reserve to accretable discount bucket. The estimated LTV of mortgages in non-agency holdings falls to less than 85% at year's end from about 105% at the start of 2012. California (46%) and Florida (8%) make up the bulk of mortgages held.
    • Debt-to-equity ratio of 3.0:1 vs. 3.1:1 at end of Q3.
    • CC at 10 ET
    • Press release, Q4 results
    • MFA no trades premarket
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  • Feb. 13, 2014, 8:05 AM
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  • Feb. 13, 2014, 12:05 AM
  • Feb. 12, 2014, 5:30 PM
MFA vs. ETF Alternatives
Company Description
MFA Financial Inc invests, on a leveraged basis, in residential Agency and Non-Agency mortgage-backed security. Its objective is to generate net income for distribution from the difference between the interest and other income it earns on investments.
Sector: Financial
Country: United States