Nothing fundamentally wrong. Spreads are shrinking in agency market but we all know that wont last forever. Once the feds stop interfering spreads go back to normal. People should have hedged back at $17.50 when it was high above book. Leap puts are your friend after a huge gain. I ended up mitigating $2 of the downturn without having to sell shares so my tax advantage is in tact. People need to learn to hedge and not get so greedy. As stated before, these things always bounce around book. The amount they bounce around changes but to expect mreits to stay 20% above book forever is insane. Same when they are far below book.