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Invesco Mortgage Capital Inc. Message Board

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  • andynsheri andynsheri Oct 27, 2011 1:10 PM Flag

    Looks like nobody will touch this!!

    I bought at $14.70 and gulped when it went south of $13 with the larger herd.. Wish I would have bought more of this when it was sufferring from bleak and doom and gloom fumes..

    The media has alot to do with the short term market fluctuations, glad to ride this roller coaster higher right now. Looking for a strong quarterly report and another good dividend announcement... Cannot beat the dividend yields here.

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    • What if the earnings report is as bad as last quarter?

      • 1 Reply to sajidman
      • Last quarter this reit got burned by its interest rate hedge contracts expiring at a loss. They obviously hedged for a rise in interest rates and rates dipped to record lows. The other risk factor here is any potential loss from defaulting non agency backed MBS. While they usually guarantee higher rates they have more risk of default and exposure to loss of principal and interest. IVR has small percent of their portfolio tied to these hybrids.However these securities are usually collateralized by the property itself. So IVR goes into the property managment business and its not a total loss.

        Lower market mortgage rates means a higher gaap value on existing mbs held in the portfolio. This will probably give IVR a good boost on the income statement and its MBS portfolio has one of the highest yielding returns on assets in the industry. So high dividend payout means exceptional yields here.

14.16+0.060(+0.43%)May 24 4:02 PMEDT