Mortgage REITs continue to get repriced for lower yields going forward with earnings reports from JPMorgan and Wells Fargo not bringing good news. Both banks reported sliding net interest margins and booming mortgage business (some, if not most of which is refinancing) - an ugly combination for leveraged owners of MBS. [View news story]
Funniest thing I've heard in months! I foolishly jumped at AGNC as soon as the ex-dividend occurred because (as in the recent past) it usually recovers quickly. I already averaged down once but that was clearly too soon! Reading everything I can today to try and decide whether to kill it or hang out for some recovery. Guess it's high time for some adversity since I was doing so well for 9 months. Oh well.
Not worried about QE3 and prepayment risk as much as one might expect, American Capital (AGNC) CIO Gary Kain notes (transcript) 70% of his company's holdings are backed by lower loan balance mortgages. With mortgage origination operations running at full capacity, a $100K refinance is going to get pushed to the back of the line. "You really need ... 150 or more basis points of incentive ... then you start to see (lower loan balance refis) pick up." [View news story]
Maybe I'll add my picture if you ever post one of my comments. Besides, what does physical appearance have to do with any of this? Maybe I'm too old for the society as it stands.This "new" American culture is so wrapped up in appearance and political correctness that I just have to laugh.
American Capital Agency (AGNC) falls 4.2% premarket as the stock goes ex-dividend today. The $1.54 decline thus far is quite a bit bigger than the $1.25 dividend. Secondary offering on the way? [View news story]
That's what I did Capn'. Someday the goodtimes will be over. But I've been happy as a clam over the past year+...hehe...hopefully, I didn't just curse us all by putting it into words!
Mortgage REITs continue to get repriced for lower yields going forward with earnings reports from JPMorgan and Wells Fargo not bringing good news. Both banks reported sliding net interest margins and booming mortgage business (some, if not most of which is refinancing) - an ugly combination for leveraged owners of MBS. [View news story]
Not worried about QE3 and prepayment risk as much as one might expect, American Capital (AGNC) CIO Gary Kain notes (transcript) 70% of his company's holdings are backed by lower loan balance mortgages. With mortgage origination operations running at full capacity, a $100K refinance is going to get pushed to the back of the line. "You really need ... 150 or more basis points of incentive ... then you start to see (lower loan balance refis) pick up." [View news story]
American Capital Agency (AGNC) falls 4.2% premarket as the stock goes ex-dividend today. The $1.54 decline thus far is quite a bit bigger than the $1.25 dividend. Secondary offering on the way? [View news story]