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ARMOUR Residential REIT, Inc. Message Board

  • chuck37chuck chuck37chuck Feb 20, 2013 3:58 PM Flag

    Silver Lining in Fed's minutes

    The Fed's may halt QE3. Thats actually good news for REIT's. No more artificially pumped up
    assets. I've been waiting and hoping for some time now that the Fed will start the process
    of letting Market Forces run their natural course.

    Sentiment: Strong Buy

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    • Chuck is correct in some respect as the creative accounting will cease to some extent with DCF{ discounted cash flow} however Blusky is also correct as highly leveraged mREITS will get rolled over unless they have allready acquired a large motgage pool at low rates insured by Freddiemac from which to profit off using the "spread on basis points" over bond yields, Often the funds that are govt insured are backed up with Treasury bonds. zzzya Time for dinner as market is done and stocks all over town from BBBY to GM{govt motors} are down. NO problem. Up later

      Sentiment: Strong Buy

    • Following your theory, you "want the Fed to stop supporting the MBS market" through their buying program ... REALLY!?! REALLY!?! Think about what you just said!!!! Once the Fed stops buying (or pumping up MBS valuations according to you), ARR will be absolutely crushed!!!! And, once the Fec actually starts unloading their huge MBS portfolio, ARR will be unable to do offerings fast enough to prevent the loss of book value ... if not managed properly, we're talking the next Bimini Capital Management ... look that one up

    • OMG! Please tell me that you are not the same guy that claimed that rising mortgage rates is good for MREITs ... rising mortgage rates will crush MBS valuations ... MREITs with highly leveraged portfolios (like ARR) will get their book values crushed ... monthly dividend payers will lose money on hedges and selling MBSs at a loss ... ARR is simply doomed when the Fed halt's QE3 ... the good news is that really is not going to happen for years

19.40+0.140(+0.73%)May 31 4:01 PMEDT