Money with mouth. Just bought another 2,000 @ 15.21(91.6% of book). As long as dividend is at least 1.52 per year I get paid 10% or more annually to wait for spreads to widen. Pay me 10% on my cost and I am content to wait for a long, long time.
It's a pretty simple formula for NLY to follow. Sell down their portfolio while the Fed is buying. Use the proceeds to buy back shares below book value. It's printing money. Then when the spread stabilizes and NLY is trading above book value sell the previously purchased shares. The investment portfolio needs to shrink. Hopefully, the incentive system of management getting paid based on assets under management doesn't distort their judgement. That is no guarantee.
that type of thinking is what allows the crooks of wall st. to change the "game" and steal from you. better of preparing for the coming great AWAKENING that we need to cleanse this corrupt system starting with the people making the laws.
Will trade close to book value and buy backs reducing distributable outstanding shares will keep NLY the leader in the mortgage REIT market. Yield will be maintained.
Sentiment: Strong Buy
They wont get wider for years... interest rates will keep falling until the ten year goes under 1% then they will bounce and wont stop dropping in value with yields going higher and higher with no end in sight.