Take this with a grain of salt the size of a bus, but maybe AGNC buyers who missed out on AGNC's run-up and/or just couldn't get themselves to buy further in at $34-$35+ decided to put $$ into ARR instead... And now that AGNC announced its SPO in AH today, these folks are pulling some $$ out of ARR to buy into AGNC when AGNC dips tomorrow.
Hey, it's not a *complete* shot in the dark.. The above was my original plan anyways :). But as I've grown a little more comfortable with ARR, I am keeping all my ARR shares and will simply use some dry powder to buy further into AGNC tomorrow.
Turbo....question....I own AGNC, ARR, and CYS. With ARR having a higher div than AGNC right now, why would you buy AGNC instead of putting more money into ARR? I realize ARR's PPS appreciation has not been as good as AGNC, but if one wants the div I would think ARR is the better choice now, no? The reason I am asking is I have some dry powder for tomorrow (Thurs) and want to buy more of either ARR or AGNC.
1. AGNC SPO - affects all MREITS (more supply - some will switch from ARR or others to AGNC to pick up shares 2. AGNC announcing a GAAP loss and the spillover to all MREITS; there will now be those who scream "How can AGNC pay dividends with a GAAP loss?" The bears and media pundits will attack.