So when spreads narrowed resulting from when Fed began QE or manipulation of 10-year Ts (Q1 2011), dividend was cut from $1.40 to $1.25. With this bad quarter dividend will drop to $1.00 despite undistributed income. So maintaining a 15% yield, drops the stock PPS to $26. I bet stock trades lower this Summer - mid-twenties.
when qe happened you saw a contraction in nim - and the cut to go with it - the internals are good - spread stable and inched up with tba - tba will add value to the spread but add variability to markings and the roll will too.
you say they cut from 1.40 to 1.25 this is 10.7% cut and then you just casually say cut to 1.00 as it that makes perfect sense - but its a 20% cut from 1.25 to 1.00
and the fundamentals dont support it to begin with as it did on the first cut
spread up ; cpr stable, leverage stable etc
no i wasnt long into the earnings so that i just spit out some nonsense to defend it - just pointing out the internals dont support your reasoning for second statements.