WMC shorts have problems. High cost with mbs going up or even flat rates
3 months later after the Q2 explosion MBS prices relatively unchanged but in an uptrend. This is a high cost stock to short and high risk to short. If mbs don't go down than 1 yr dividend cost exceeds 20%. If mbs go up than costs could run much higher to stay short. 16% of float to cover... This stock is about to make no sense at all. It's about to run well above NAV as of today... Probably go 1.15x book on short covering. See possible offering risk above $18.50, but still a ways to go. Depends on where mbs goes.