Hi, this is a rather naive question, but that's what message boards are for, right?
I'm trying to get a feel for the market value of the agency mortgage backed securities that AGNC owns to get an idea of how their book value is holding up. I have been watching the MBB ETF, and the valuations seem basically stable. Is there any other index I should be watching (like maybe an index of adjustable rate mortgages?) Put differently, what do the pros look at to track MBS values?
Recall that when AGNC was set up it was stated that its' maximum leverage would be 10X..and it's only going to be investing in government paper. Contrast this with major sized firms like Lehman Brothers,Bear Stearns,and Merrill Lynch which were investing in high yielding garbage while leveraged over 30X. When the crunch started, these firms went over the cliff into free fall. I don't see AGNC going down like that.