Don't be so dramatic. Beyond paraphrasing others, you cannot really articulate/backup your outlandish targets. There are no ongoing rate hikes.. so I don't know what you mean "until the rate hikes stop". Furthermore, you cannot say why you recommend buying fsam/mdly other than the obvious and probably only reason.. which is that you own both.. Both are insanely illiquid, (~20k mdly, 45k fsam avg daily volume).. so you thus need to hook some muppets to bail out your positions. Having position sizes that nearly match daily avg volume has gotta make you spot your pants a little..
they learned their lesson the first time rates spiked and spiked
and now they want to preserve book and keep it stable and produce a solid return
the hedging will pay off when rates if they do go up and they show a stable book book and then a rising spread income.
Versus what? I don't quite understand any of that. So maybe I should leave out quite? I don't understand any of what you just wrote.
Spirit Realty Capital reports FFO in-line, revs in-line; guides FY15 FFO in-line (12.33 -0.13)
Reports Q4 (Dec) funds from operations of $0.21 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate of $0.21; revenues rose 11.2% year/year to $154.8 mln vs the $155.04 mln consensus. Co issues in-line guidance for FY15, sees FFO of $0.84-0.86 vs. $0.85 Capital IQ Consensus Estimate.
FSAM's fee cow, FSC, is so far under book that it AUM will remain stagnant. Unless they yank up leverage (yes AUM is based on not equity but assets, it's insane) 4,911,422 as of dec 31st.. . so I don't see what growth upside you're talking about..
Also.. Class B .. ie the 42,856,854 shares that are not 'public' yet. Class B does not receive dividends.
and here. I took the time to find the 'gotcha'
"In connection with our reorganization, we will enter into an exchange agreement with the Holdings Limited Partners that will grant each Holdings Limited Partner and certain permitted transferees the right, beginning two years after the closing of this offering and subject to certain vesting and minimum retained ownership requirements and transfer restrictions set forth in the Holdings LPA and Contribution Agreements, on a quarterly basis, to exchange such person’s Holdings LP Interests for shares of our Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications. As a result, each Holdings Limited Partner will, over time, have the ability to convert his or her illiquid ownership interests in Fifth Street Holdings into Class A common stock that can more readily be sold in the public markets. When a Holdings LP Interest is exchanged for a share of Class A common stock by a Principal, the corresponding share of Class B common stock will be retired and cancelled. See “Certain Relationships and Related-Party Transactions — Exchange Agreement.”"
So you see.. When that happens.. They'll be stretching that AUM income over a larger base of shares. So no.. no growth.
Stay away from anything to do with Fifth Streeth.
Leonard Tannenbaum runs those companies for his own benefit.
Shareholders have been getting the shaft.
It's border line as shady as those fools that started Bimini and just keep starting new mreits and run the share holders capital into the ground every time.
Less 15 year and up to 63% in 30 years. and they added more non agency as a percentage of their asset mix - went from 20% non agnecy to 23% non agency
thats somewhat a change in their mix from linked quarter
did they add more hedging or are they exposed to a little more duratoin then last quarter???
Mitt which has so much cash to be able to telll the market that they will keep the divi constant and or raise it perhaps wtih good performances.
Maybe and good for you and them but that is separate from mreit analysis.
even cys is hedging up more then just straight long bets
levered massive long allowed agnc to go from 500mil to 15 bil but they got lucky
then rates jacked up adn they got clobbered adn it woke them up
they are learning (and i mean most of the mreit firms) and showing that they are hedged up where it means something.
stable book with a good earnings and that will build confidence.
Quarterly mortgage prepayment levels are influenced by the availability of mortgage financing with attractive terms and the overall health of the housing markets, as well as routine seasonal factors. Mortgage prepayments declined during the first quarter primarily due to seasonal factors, leading to lower investment premium amortization and higher yields. However, mortgage prepayments increased for the month of April such that we now anticipate lower yields in the second quarter due to higher investment premium amortization.
I hear ya but everything is relative. MTGE will maintain and the BV goes up slightly. Has any mreit been able to raise their BV up significantly? I have to assume they all have big hedging losses.
yeah, you not so carefully left out the word "most". This is one reason why I don't like posting something like this. The other is that I cannot update everything in between when I say "it has some selling pressure" and when that selling pressure subsides. and petar, I have lots and lots of WMC, it is my largest holding - so don't tell me about WMC like you're informing me of something I'm unaware of. I was suggesting this as a replacement for a few less-than-stellar monthly paying mREITs.
in 3 weeks .50 divi puts it at 25.50
it yields more then tano and it has less duration then tano and yet same price and tano just had divi
get long tann and get 2% in 3 weeks to 4 weeks