Agreed, at this price the secondary may not be accretive to BVPS, which may actually have increased due to market pricing of MBS. On the other hand the dividend may have had a counter effect on BVPS and consumed some of the excess distribution available.
This is where management objectives and shareholder interest diverges.
We will see.
But, there is a counter balance to buying now because for sure, if there is a recovery in PPS, there will be a secondary, which will bring the PPS back down. Why not wait and see?
Alright, you guys will think me crazy again. I'm really thinking that they are going to start actually delevering and the fed is going to help them do it. I think you may see core earnings drop a little bit (depending on how rehedging works out), and capital gains earnings going up.