1. "cnbc host said" is not a good reason to do anything, ever
2. was that long-term rates or short-term rates? if short-term rates, it would reduce the spread slightly, probably less than it's expanded in the past three months; if long-term rates that would expand the spread further, which would increase profits on the assets that TWO is buying with the recent SPO proceeds and the leverage from short-term borrowing.
3. div coming in a couple of days. still time to buy if you want to get 32 cents in cash and about .05 shares of SBY (worth about 97 cents today) per shares of TWO, and still have your TWO.
Compass downgraded WMC which has a Rueters grade of 10. In addition, the stock has increased in value by 4% since the downgrade. You know what Pal, I am downgrading Compass to "I" for incompetent. TWO imho is a great investment; the distribution along with the divie is putting a lot of schekles in my grandkids education fund. What about the SPO with TWO???? We are trading at close to an all time high in spite of that. The mortgage servicing business is another winner for TWO. Can you name the CNBC host? Cramer the other day said "TWO is OK I like what I am seeing".
You are kidding, aren't you? The downgrade is actually a confidence builder as the expected share price is an increase int the $14.oo range with higher anticipated if TWO spends the money they earned on the secondary in a wise manner similary to what hey did with SBY. The dividend and future for both companies could not be brighter at this point in time. Thus, you are selling while I am buying as much as I can of both companies.