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American Capital Agency Corp. Message Board

  • peabeetwo peabeetwo Apr 23, 2012 7:06 PM Flag

    Word on the Street.....

    I have a good friend that works as a realtor.
    He has told me that the lower end market is doing well.
    Prices and mortgage rates are a buyers dream in the low end arena. I'm sure AGNC is capitalizing on this.

    P.B. New Hampshire

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    • Thanks Onion,

      Looks like I'll have to make money my shorting the H.E.L.L. out of everything. Will short Puts now on my Long bets, and short Calls and shares(SPY) starting November on my short bets.

      Should be great fun....stay tuned....;-)


    • You are 100% right and I owned a BBT and think I might have lost a couple of dollars ( litterally a couple of dollars) after divi payment vs premium paid. They called the issue before the scheduled first call date.

      Also you must be careful about buying over $25 because of the scheduled call date... Now because I have Bloomberg professional, I am able to see YTC (Yield to call)
      meaning if I buy a preferred with an 8% coupon and I pay a premium, say $27 and the next call is in in 1 month I could lose money or have a negative YTC if in fact it is called next month..

      The common investor cannot see this on yahoo. for example. The Mreit MFA has a pref Seiries A that has a 8.5 coupon and trades today at 25.69
      it can be called next month (30 days notice)
      Now the common investor will see 8.27 yield. Thats the current yield.
      But the yield to call is -17.69 ( thats annuallized) which means if you buy it today and they announce tomorrow that they will call it next month you will only get back $25.

      Thats why I mentioned I wouldnt buy many of these at today's prices.

    • I believe that some of these are Bank Trust Preferred Securities and are subject to early call due to the occurence of a Regulatory Event stemming from the provisions of Dodd-Frank which no longer allows these Securities as Tier One capital for Banks (See prospectus). Most, if all of the Bank Trust Perferred Securties will be called starting 12-31-2012.

      BBT has already announced SEC approval to call BBT.A, B, C and D. I own some BBT.b and has suffered some big losses the last two trading sessions.

      I not an expert but just giving a heads up. .

    • Doc.

      Please remember that timing was everything and I bought most of these or added alot more to these during the financial crisis in 08 and 09 and the European crisis in 2011. Prices were way down so my yields are quite high compared to today. In fact many of these I would not buy at today's price.
      I might own 30 or so preferreds here are 10.
      I also own MLPs, Mreits, Corporate bonds, and Mortgage backed securities.

      BML.Q (BAC)
      DTK (Deutsche Bank)
      IND (ING)
      KEY.F (Key Bank)
      LYG.A (LLoyds Bank)
      C.V (Citi)
      JPM.C (duh)
      BCS.C (Barclays Bank)
      GSF (Goldman)
      MWR (Morgan Stanley)

    • Housing is booming here, but this is Silicon Valley which is strong right now. In some areas, housing prices are at pre-crash levels already.

      • 1 Reply to ray8435893
      • OT: I am planning on retiring in 3 yrs. I'd like to live state tax free in FL.
        I have been toying with idea of buying something now and then making it my primamry residence in 3-4 yrs.
        But If I am making 16% in AGNC now, why would I take that money and put it into a house that will be an added expense for 3 yrs. Plus 3yrs x 16% = 48%. I dont think FL real estate will appreciate 48% in 3yrs. I will keep my money in AGNC ( and others) and buy something then.

    • yourbestfriendintheworld yourbestfriendintheworld Apr 23, 2012 7:41 PM Flag

      I believe I've mentioned that my own friends in the construction biz are seeing a major uptick in building.

      And the recent housing-starts report was encouraging.

      It's starting a little later than I'd hoped, but the RE recovery I was touting over xmas is rattling the china.

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