AGNC says it will be buying paper supported by GSE´s. To me, that means fannie and freddie. I like AGNC for buying up CDO´s on the cheap, but not for the GSE reasoning. With today´s fre,fnm fall I wonder if GSE paper is worth anything. Anybody have any thoughts on this? (I´m long ACAS).
I'm long both acas and agnc..and I have no problem with the paper that agnc is investing in. If it goes the entire country goes. Besides, I expect Malon's Team to get a terrific discount. My investment in AGNC is based on my expectation that the dividend in 2008=2009 is in the $3.50-$4.00/year range. If so, this is one of the great IPOs in History. It also will provide a dividend big enough that ACAS will be able to maintain its' dividend,too. My grandfather always regarded Jimmy Carter fondly as Carter screwed up so badly that USTreasuries/CDs were 15% or so. And we may have a shot here like that if the USA recovers. I hope so!