this should trade atleast what the current BV is. Otherwise, it's undervalued. If hedge funds and portfolio managers think the BV could actually increase in the 3rd quarter and dividend will remain the same, this thing will blow right by the 25.50 mark.
unfortunately - it's in no way clear that rates have stablized. In fact rates are 10 bps higher now than at qtr end and the taper has not yet commenced. It's hard to say where rates will/should be when the fed exits, but history suggests the mkt will over react to the announcement and the beginning of the taper - so I'm still cautious. I've been saying for sometime that I wish the fed would announce the end of QE3 and end in sooner rather than later given so that rates can stablize and the world and the mreits can move on with business. This chinese water torture is killing the mtg and housing industry right now.