After mkt. price of RSO is down 30 cents due to AGNC huge disappointment, but I think investors are comparing apples with oranges. RSO, ARR, CIM steer clar of agency guaranteed mtgs due to nil on spread.Tomorrow should be interesting. I own 5000 RSO at 6.45 and will buy more. Comments ?
Currently, 7:37 EDT, RSO is down $0.20. However, there have been only 17500 shares traded. I think that you are correct on both accounts; RSO reacting to a poor earnings report for AGNC and that they are very different animals. If anything, IMO, the disappointing news for AGNC should be positive for RSO since they are in very different businesses with the FED buying MBS but not commercial loans. It may take a day or two but the AGNC affect, IMO, will be short lived. When RSO reports it will be judged on its own merits.
Comercial mortgage investments here are all short-term; there is no comparison to something that invests in 30Y fixed-rate residential mortgages. And RSO's loans are mostly floating rate. CDOs and CLOs are matched funded. It could be that the after-hours dip in RSO was people betting that today's job report would be bad. (Trying to time the market is a very bad investment thesis.)
AGNC lost BV mostly on its TBA stuff. Now every mREIT that has not already reported is down 2-3%. Example: TWO's subprime will give it a new BV increase, and they are now getting into MSRs, but that's down 2.5%. Lemmings.
Alreadyhave enough but agree that this is apples and oranges. Same with NCT and NRF. Reits can drive one crazy but they are what they are and pay great dividends which I believe are sustainable in a mixed bag. While agnc may be cutting nrf just increased, rso will increase and nct has predicted a big increase. GLTA!