Quite a few people were hurt by their recall of the B preferred ( Not me ) and are afraid of the new preferred thinking they may call them too if it is in their interests... They are going to preferred with other entities that are not callable... That and the Fed has signaled an end to easing___IMHO
Yes, the Fed will soon quit buying massive amounts of both 30 year mortgages and long term treasuries. This will force the values of 30 year mortgages down. Since NLY, AGNC, etc all have a large portfolio of 30 year mortgages which is highly leveraged, their book values could be severely damaged, depending upon how well they are able to execute hedges. These are high risk stocks currently. CMO has something in common, it also buy mortgages on a highly leveraged basis. But it does not own any fixed rate long term mortgages, only very short term adjustable rate mortgages. There will be no effect on the book value or dividends of CMO when the fed ends QE.