Anyone who has followed NLY knows that Mike Farrell has extreme integrity. His main point was that there is still a 190 basis point spread btwn the 1 and 10 year...and reitirated his confidence in NLY's ability to return dividends as high as the low teens in the next year.
Wachovia has their head up their arse as usual. NLY price will move up through ex-date starting tomorrow. Buy & Hold NLY ==> generational wealth
"...and reitirated his confidence in NLY's ability to return dividends as high as the low teens in the next year."
I think you misunderstood his statement. I believe he said that even at the low end of his ranges for earnings NLY would have an ROE "in the low teens". (Right now it is in the middle teens.)
As for Kudlow, he seems to have his mind made up and definitely cut Farrell short. I don't think Kudlow knows jacksh*t about mortgages, especially adjustables. All he wanted to home in on is that the treasury curve is flattening (the entire world knows this) and he didn't seem to want to hear about mortgages.
Kudlow is the same rah rah guy who was nearly jumping out of his chair on Apr 6 when that looney, spurious 306000 job number came out. Like many of his persuasion, he was telling everyone that bonds would be a disaster from now on and the that Dow would skyrocket. (In a market with 4% earnings yields and rising rates.)
I confess to a pet peeve of putzy talk show hosts who invite interesting guests to give us some information we might not be aware of, only to spend more time expressing their own, most often, less informed opinions. Kudlow should go back to his former day job. Trust Farrell.