Now let us see what the market thinks of book value for mReits in the next few months. Given the mercury of late, sentiment will probably swing around a bit.Two countervaling attitudes will fight it out.
Book value good, safe place to put cash.
Book value makes no difference if core earnings keep declining.
I'm too stupid to take a chance on which way mr market will swing. An option strangle might be in order with an agency that trades tighter strikes, like agnc or nly.
Yeah, earnings report leaves much to be desired. Can't read to much into it since it doesn't include many key metrics or financial statements. Wish they would at least include weighted average number of shares so I can make my own calculations. That's not even possible. Did find out there seems to be some pressure on core as with all the mreits with
leverage declining 8.93x from 9.04x
CPR increasing to 13% from 9.1%
Average yield on assets declining 2.70% from 2.97%
Seems they made their taxable income but they tell us nothing about UTI :(
AF trading is up 10 cents making book value .92x. At least that looks cheap. ;)