Management was ready to go shopping and the price of MTGE was at an all-time high.
While this spo may sold under book value,
it still is being sold higher than MTGE's last spo.
The only problem I see with that is that MTGE's book value possibly has risen too far too quickly. :)
~Not a problem~
It might have been risky for MTGE to wait until the pps rose high enough to allow the discounted spo to be accretive to book value.
It might not have even been this quarter.
If not this one, then when?
These guys always seem to know what to buy when.
Evidently they are ready to buy.
MTGE is currently about 1/2 way to the next ex-date.
Waiting too long to sell the spo and buy MBSs to fuel this quarter's profits could hurt next quarter's report and beyond.
Timing had to do as much as did the price, imo.