The drop in BV was larger than what i would have expected. Given the reduction in MBS portfilio, I'm not sure they did not sell some of those and move some money into residential loans. Maybe the CC tomorrow will have more details to let us know how they can protect BV. This could have been worse, but this is not a good report. I'll hold my modest position.
If I'm reading the report correctly, their core earnings were $.59 per share, but unrealized and realized gains in their hedging gets them to $1.03 per share for GAAP. Isn't this hedging exactly what we would expect good management to do as rates rise?