I sold some mtge after the bell
agnc .87 and mtge .86 and you gotta suspect agnc and nly get pressure if you talk rising rates or they rebound nicely
i have twice as much agnc then mtge short
nothing big but i sold all the mtge early adn covered and then sold after bell
short 3k from 19.97 range
i guess it will remain to be seen if agnc can move past the dollar and go more and same for mtge
I agree on AGNC but I'll take the 53 cent UTI in MTGE as insurance that the div is not getting cut. The fact AGNC blew out its UTI might have freaked out some investors. Having said that I bought some AGNC at $23 today. I expect a bounce tomorrow but, as u know, mreits have a way of not acting rationally.
"Looks good but who knows how the market reacts. AGNC got clobbered and MTGE is easier to grind down."
ditto hate ... MTGE's report was good, but Agnc's report was IMO better and it's down more than $1 from Monday's high. I think AGNC had run up into earnings a bit more than MTGE - but still ... one has to wonder. One can argue that today's action was due to the good GDP print and the arguably somewhat more hawkish Fed outlook, but seriously - I don't see the Fed changing it's tone/guidance meaningfully before the end of the 1st qtr and spread income (as opposed to BV and possibly dollar roll income) will actually be benefited by slightly higher mtg rates.
Bottom line is that AGNC was down 2.34% vs. MTGE being down only .89% - so one has to wonder whether MTGE gets hit tomorrow - or was today's action a one-day phenomenon related to the FED/GDP announcements that gets digested tomorrow. Of course Friday's jobs # could also be a mkt mover.
BV jumps 4.4% or 95 cents
Net spread income and dollar roll per share rises from 0.59 to 0.72
UTI drops but still strong at 53 cents per share
Looks good but who knows how the market reacts. AGNC got clobbered and MTGE is easier to grind down.
Check out SSR they just came out with an email report on MTGE, pretty interesting report. If you're a trader you should sign up to their free newsletter regardless. Their last downgrade was on PLUG, next day it tanked 40%...LOL
I think he means that AGNC was down 1% when:
1/ 10 yr went down 0.03 to 2.46
2/ net spread and roll income was 85 cents so it will easily cover the 65 cent div
3/ BV jumped 7 per cent in Q2.
Not that logic means much with mreits but today was a head scratcher of a day.
I added 4000 @ 17.19.
Going to wait and see if any dips happen beyond that.
Ye it's not clear to me what they will do going forward hatedahft.
Market sentiment seems to agree with me on that or something else as AGNC isn't up today.
I wonder if they would just do ROC to cover the dividend if they are short on the Taxable Income side.
NYMT payed part of their 2013 dividend with ROC. It didn't hurt the stock price at all.