Managed MLP Portfolios Mostly Fail To Outperform MLP Index, Or Are Unproven [View article]
I bought FEN @ $13.35 on 11/17/2008. Today it is $35.04 plus quarterly dividends that have increased from about $0.46 to $0.51. I wish I had put every penny I had in FEN back then but it has been a nice ride for the money that I did invest.
"Rates go down you get killed, rates go up you get killed," says hedge fund manager Brad Golding, summing up the situation for mortgage REITs. The days of double-digit yields are over - at least at Annaly (NLY) - where new co-CEO Wellington Denahan-Norris calls it "fantasy" to think the company can just jack up leverage to replicate the returns of the past. [View news story]
Return percentage is a function of price. But I must say I like to hear NLY is not panicing and will slow play things.
"Our goose is cooked," writes a mortgage trader, imagining a conversation at the trading desk of a pure GSE mREIT like Annaly (NLY). With MBS prices bid to all-time highs (thank you Fed) and refinances on the way up, mREITs face an ugly combination of lower yields and higher prepays. One solution: Unload their MBS at these high prices - tell the staff to take a long vacation - and wait for Bernanke to exit. [View news story]
Hmmm....I wonder if there could be any more negative news or panicked selling than we are currently seeing last few days?
Do you have a target price where you would buy NLY or ANGC after the sell off? I bought some AGNC yesterday during the selloff. Apparently too soon but with short term rates low through 2015 seems there must be a price where these companies still throw off good income.
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Me too. But if you could have the long term expectation of a 12% annual return from NLY virtually anyone would just load up their portfolio with NLY seeing as that is well above the long term return for the market.
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
The market is a discounting mechanism. The price isn't higher because there is no conviction that the current dividend is sunstainable for any long or medium term time period. So the market discounts the price to a level where it views the returns sustainable and in line with market level returns over a longer term. Now let me say the market has been wrong and all over the place on NLY imho. I have been long since 2009 and am still long. But if the market believed NLY could keep paying its current dividend quarter after quarter for the next 10 years or longer the yield would not be 13%, it would more likely be around 6%-8% and the stock price around $27-$36.
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
I guess what I never get is that fact NLY yields 10+% to me is a sign the market does not believe that dividend is sustainable over the long term and probably medium term. If there was a firm belief the dividend was sustainable at the current level the stock price would be markedly higher dropping the yield into the mid to high mid single digits. So telling me the dividend will drop is telling me what the current stock price is already telling me.
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Broad bush statements like "I also believe that there are some signs that it is possible the best years are behind the company" that ignore the ebb and flow of the markets always make me wary of article. Not a hyperbole fan.
I am sure he is talking about returns not the company. Of course to buy the statement you would have to believe that the markets pricing mechanism already had discounted the fact that double digit yields aren't eternal. To me the biggest danger to NLY value is a return of growth stocks as opposed to an issue with their business.
Personally I have definitely developed an interest recently in both FEX and VGK. And their 4+% yeilds don't hurt. If this is or near the Europe bottom then these guys are worth a look to me.
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American Capital Agency Corp.'s Earnings Disaster - A Warning Of Things To Come? [View article]
Managed MLP Portfolios Mostly Fail To Outperform MLP Index, Or Are Unproven [View article]
"Rates go down you get killed, rates go up you get killed," says hedge fund manager Brad Golding, summing up the situation for mortgage REITs. The days of double-digit yields are over - at least at Annaly (NLY) - where new co-CEO Wellington Denahan-Norris calls it "fantasy" to think the company can just jack up leverage to replicate the returns of the past. [View news story]
"Our goose is cooked," writes a mortgage trader, imagining a conversation at the trading desk of a pure GSE mREIT like Annaly (NLY). With MBS prices bid to all-time highs (thank you Fed) and refinances on the way up, mREITs face an ugly combination of lower yields and higher prepays. One solution: Unload their MBS at these high prices - tell the staff to take a long vacation - and wait for Bernanke to exit. [View news story]
Annaly: Reversal Of Fortune [View article]
Don't Buy Chesapeake Granite Wash Trust At $20 [View article]
Exports to Europe
EPA restricting new drilling
Expanded use of nat gas as surface fuel
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
Why Annaly Capital's Dividend Will Keep Shrinking [View article]
I am sure he is talking about returns not the company. Of course to buy the statement you would have to believe that the markets pricing mechanism already had discounted the fact that double digit yields aren't eternal. To me the biggest danger to NLY value is a return of growth stocks as opposed to an issue with their business.
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Wait On Investing In Freeport-McMoran [View article]
How We Locked 10% On Annaly [View article]