insta, you have been like a clown bashing and pumping all the time. You trade too much. I think the brokers like you a lot. I am sure you will be pumping WMC in the near future...
Do you notice that WMC outperforms most of reits today? It means you are already losing money if you long other reits and short WMC...
ok... You are trading about book value when AGNC which protects book better than WMC and is positioned for taper better than WMC is under 0.80 p/b. So 20% minimum drop + book losses will be higher at WMC due to the long TBA position and 9x leverage. There is just too much to say about all that and it was a directional bet gone wrong. SELL WMC, rotate into AGNC if you are too scared to short. Or at least just sell your WMC... THAT IS CRAZY to keep it at this premium with rates going up.
Insta, what makes u so certain economy is strong enuff to taper?
My guess is that bond prices and BV are going to just oscillate rather than drop dramatically as during last summer. If that happens won't the wider spreads help eps?
wmc isnt above book - but soon it will be if mbs keeps falling
but wmc also (this is for jack) has moved some to 15 year and has increased hedging - they too are protecting BOOK (or their management fee) - call it what you want but they seemed to make statements that they believed rates are going lower but if you believe that then why the shift and adding hedges????? or did that just happen from runoff or such.?