"Aikman : I know, I'm happy to get Kain but isn't MTGE better diversified into non-agency than AGNC? 1 day ago Packrat1987 : AGNC is purely agency, MTGE is hybrid (non-agency and agency). Agency mbs might seem scary because of rate exposure, but... 10 minutes ago Packrat1987 : remember Gary can manage that exposure and he is on the defensive right now. Credit risk is much more difficult to manage. Remember 2007. 10 minutes ago Packrat1987 : Gary doesn't manage the non agencies for MTGE, a guy named JEFF does. 9 minutes ago
Packrat1987: higher agency mbs prices and wider spreads equal higher dividends later when rates stabilize a new level. if rates go up 100 bp from here.. 6 minutes ago Packrat1987: Then most extension risk will be priced in. Short term rate increases will unlikely have a dramatic effect later down the road. 5.5% to 6.5% 5 minutes ago
Packrat1987: is the 30 yr normal.. see back in 2007 when the economy was hot and 06... you can see 6% or up 150 bp from here - fed funds was 4%ish. Seconds ago Packrat1987: So dividends will likely go back to $1.40ish or more until short term fed funds start going up.. then they will get squeezed again unless... Seconds ago•!Report Abuse Packrat1987: leverage goes up.. and they keep taking leverage up to offset narrower spreads." -Seeking alpha stock talks.