so is this new killer deal pushing down the book value of ivr, amtg, mitt etc, in some way or how exactly are they performing so badly relative to others .
mtge and wmc are down there too but not as much.
how is this new fnma deal affecting ivr and some other hybrids???
FNMA just put out a killer 'deal' on the new issuance of CRTs.. It's pressuring the other issues.. Hence IVR and others falling on their collective faces.. The new 1B tranche of the latest deal is libor + 1175bps (!! it's first loss though).
There is nothing wrong with most resi credit.. Though these statistically have a large amount of TX and CA.. CA especially.. most likely has artificially low LTVs.
This is likely why IVR is getting curb stomped relative to peers.
if you can't get it occupied, you don't have income.. You only have taxes and maintenance.. thus negative carry.. Negative rates don't happen when things are super-awesome and leased up.. But hey, go for it.
In a negative rate environment? Sweden was the the first ro go negative in 2009 and now they have a full blown re bubble. Just thinking ahead.
The fun king 10 year is at 1.58% while the the old bat is talking about negative rates on the hill. Japan and Germany are essentially at zero on 10 years. These fun king academics are scaring the living shot out of me. Central banks gone wild. How do you think this all shakes out? Should we all just bail on this mess and buy up real estate?
NEE is who I pay my beeeeeels to. They are big into alt energy I think, but they still are a utility. As usual, my mind got tangential and started looking to see if there were any other ute pfds.. NEE is near a 52wk high (common)..Then I started to look at water utes.. and oh my god.. Hard to find one that hasn't tapped a 52wk high in the past few days. Did Michael Burry and The Big Short movie do that? That is pretty crazy.
well for sure if you like under par you should go to prefblog. canadian pref player does lots with under par.
lots to learn there.
but i dont like those i like over par
vza has lots of debt but for sure its got better rating and certainly lots less risk i the context of whats ailing the market.
vz up from 44 to 50 range while euopean banks besides today are down 30 to 60%n in 1 to 3 months
so for sure id rather have vz and nee isnt a bank and yet its behaved as badly as some european bank prefs
and stt-d and wfc-j and a few others have behaved just as bad as european banks and yet their credit ratings and their real risk is much much lower based on stt and wfc versus the parent of the bank prefs.
i certainly wish the european banks werent under pressure since i liked the bcs, ing, rbs, and hsbc (probably still good) and aeg
but risk come and so time to move to less risk and more domestic and non financials.
I think it's crazy to pay over par for subordinated debt.. well anything really.. NEE isn't a bank, and VZ has tons of debt to begin with. This is your game, you seem to play it well. Not for me I guess. My outlook is never quite so rosy as to imagine any pfd issuance to trade over par.. Even the HES pfd I was looking at buying is now over par... I was looking to see if I could get it at 44.. that's how far off I am
"duration gap" extended naturally. 30yr alloc was unchanged. EARN just reported a minute or two ago (7:27 EST)
15.86BV (vs 16.20 prior)
49c core (excluding catch up prem amort it was 61c; big diff between the two)
GAAP EPS of 11c
just came out with this ER too.. a bit of odd timing, no?
going to look for data on share repurchases
During the quarter ended December 31, 2015, we repurchased 6,080 common shares at an average price per share of $11.72
well. I could've done that...
Covered the divi
and they upped their duration a bit to be a litlte more long
im hoping earn maybe beats by 2 to 5 cents and has a very small say 1% net loss after divi and they are looking very good p/b and yield wise.
But there are also some very good quality names such as..........
nee g and h both fell 3 plus percent like europe (some fell much more but then they rallied today)
nee g and h rallied and finish up 1 or 2 pennies
some duration risk but thats not so important right now.
so ill find more quality names like those 2
stt-d quality usa bank versus the riskier ones
usb was dirt i like m and n
vza was dirt today and they have nothing to do with europe really.
so plenty of names that fell 2 to 4% and didnt rally at all today.