If you were putting fresh money to work in the MREIT sector, do you see a clear reason to go AGNC over MTGE or vice versa? Granted, my present feeling is these are too far over NBV right now and I am expecting a pullback, SO, or both. Curious though as to what other's thoughts are.
Normally I would have went MTGE since they can buy non agency paper so they can be a bit more flexible.
Their last earnings report seemed slightly under-whelming though, and they are to new to really have a history yet.
I guess one benefit you do get from MTGE is it's not a lumbering giant like AGNC is now.
At the end of the day your probably fine with either one.
MTGE. They are still in the process of moving funds into higher paying non-agency MBS now. Refi's should result in higher earnings. This quarter should be much better than last as last quarter had a one month SPO which really brought down the taxable earnings per share. Also, no SPO before XDay ... not sure when it will happen with these low rates, but not before XDay; they can't afford it.
Earnings for AGNC will decline unless rates go up. Every refi will be re-invested in lower paying MBS with no non-agency purchases possible. Will still pay the same divy for another year with the big carry-over, but I would not count on the PPS action from AGNC that we have seen in the past.