The whole of the world is "in the know" but for you!
"As indicated in our second quarter earnings release, persistent low interest rates have resulted in a high level of mortgage prepayments. This increase in mortgage prepayments has continued to have a negative impact on the yield of our portfolio as we increased our premium amortization expense,"
Further... At the same time, the increase in mortgage rates and the significant decline in the Mortgage Bankers Association refinancing index during the quarter-to-date continue to reinforce our expectation that refinancing levels will decline in the fourth quarter and early 2004.
I sold after this news as I was sure this stock was through. My only regret is that I did not short this sure thing.
Yeilds will look attractive in the short term but Dividends will be cut. You are holding an $8 stock at $13.