A cut was priced in. Don't look at this as simply a cut and assume the market will react negatively. TWO is heavy in the non-agency stuff and there is plenty of upside if the housing market can continue to improve. Further, they just started up a mortgage servicing platform and that will increase over the coming year; this is an interest-rate insensitive investment and adds some stability.
For what it's worth, TWO and NRZ are they only hybrids (residential) that I own. I'm not into these with big money, but I do own some and plan to hold for a long time
Interesting how both TWO and NRZ both come out guns blazing today in announcing more good news in purchasing MSRs. To think people could have purchased NRZ shares under $6 just a few weeks ago! I kind of regret (a little) in selling my sub $6 NRZ flip shares for $6.40 recently. I have a feeling it will be trucking right on through $7 again soon enough. Same with TWO, I think people will kick themselves on not buying shares around $9.