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American Capital Agency Corp. Message Board

  • reits_r_us reits_r_us Nov 9, 2012 11:48 AM Flag

    WMC Earnings

    Good Morning,

    Here is another great mReit with Great Earnings just released...beat expectations...low CPR and trading 6% under book...oops..that was a minute ago...there she blows...;-)

    """Western Asset Management (NYSE:WMC) reports EPS of $0.89 which surpasses estimates by $0.06. Net interest spread falls to 2% compared to 2.45% in the previous quarter. Book value is $21.76 per share, up 7.9% on Q2""""

    Get it while it lasts.....

    DocReits

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    • Morning Doc.
      Just sifting through the earnings.
      It looks good. Not quite as stellar as MTGE, but definitely good.

      I would like to see a bit more non agency added. They are pretty lite on that.
      It looks like they bought almost all agency on that last SPO.
      They did get a HUGE unrealized gain on their MBS though, so maybe they are working things correctly right now on the agency side.

      * Spread looks good at 2% considering their ratio of Agency vs Non Agency. That is dusting AGNC and NLY

      * Book came in good at 21.76

      * CPR at 4.1% on an annualized basis is great.

      * $2.74 a share in unrealized gains on the portfolio. Looks good.

      * Derivative instrument loss was high. I think this is because they hedged the wrong direction based on their last 10Q. Hopefully this will go away in the next quarter or two.

    • On the call, management made the comment that the net spread was around 1.90% at 9/30 (the 2% is the 3rd qtr average). Also, they see if coming down to 1.70% to 1.80% going forward. But, that is still very good compared to others doing all agency (WMC is in all agency now).

      • 1 Reply to jtrader64
      • --------------------------------------------
        On the call, management made the comment that the net spread was around 1.90% at 9/30 (the 2% is the 3rd qtr average). Also, they see if coming down to 1.70% to 1.80% going forward. But, that is still very good compared to others doing all agency (WMC is in all agency now).
        --------------------------------------------

        Jtrader.. I would have no problem taking 1.7% leveraged 8.5X which is a 14.45% yield. : )

        And thanks for the con call info. I hope someone posts the data online so I can read it.

 
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