..remaining shares @ 30.39 and am very satisfied with this. Now I'll just be sitting on cash in which to buy and sell AGNC and buy and sell some more for 3 whole months, lol; and wait to pounce on the inevitable secondary whenever it comes. Great fun. Everything is Irie, mon. Hope it moves up at least a little more for you guys tomorrow.
For those of you who like these mortgage REITS such as NLY, AGNC & CIM, take a look at ARR. This is a newer one that also invests only in Federally insured mortgages. It pays 19%+ and pays monthly, currently 12 cents. Also announces dividends 3 months in advance. With this one, you don't have the wide quarterly price movements that take place with AGNC. Do your own DD, but I think you will like this one.
ARR is just ok, not great. Their main advantage vs AGNC is that they are small enough to cherry pick odd lots. AGNC used to be that small. To their credit their IR is their portfolio manager who is available and very knowledgeable so you get great insight into ARR and what's going on in the MBS market by talking to him.
ARR's management experience pales in comparison to that of AGNC. I am not sure management properly estimates the high level convexity of hybrid arms that reset in 6 years. I don't know exactly what ARR paid for them and what they yield, but IMO they are only worth face value and ARR's low stated overall portfolio duration will not be realized if mortgages back up. I think their hybrid arms will sink their BV if mortgages back up.
My hope for ARR is that they do a SPO for an entry point. With their small market cap they might get tossed down to 23% yield and trade at book value on an SPO selloff combined with macro market world news volatility. If that happens I'll be a buyer.
well Joe , i 'm happy for you. I'm adding 1.40 to my cost basis and then will sell when its close. I have some loses carried forth from previous years so i would prefer also to take a capital gain as opposed to div income. I need about another 6 cents. doesn't look like we're going there so i expect a obvious drop come monday. the question is will it drop below the 1.40 from HERE Thrash Man