Yeah, it is a good report but it was my hope that we would see more Gain on sale of agency securities 210 vs. 417 linked and a better number on hedges -460 vs. -1,029 linked. The net of these two gave us the EPS of .25 vs. -.88 linked.
Comprehensive Income was strong with Unrealized gain on available-for-sale securities of 1,190 vs 689 linked.
Great numbers for the divy, safe through QE3 but I was hoping for a higher EPS. All in all, a great report for AGNC!
Bovisutor, my impression is it would be bad to sell off any major part of the portfolio RIGHT NOW.
They want to hold what they have.
1) If you want to try and maintain spread income, you would have to replace it with higher price MBS which will hurt you later on when the price of MBS drops. They don't want to buy MBS at it's peak price.
2) Or they could just not replace what they sell, reduce leverage, and reduce the spread income. Maybe they can pad their dividend for a while with the MBS gains in this case, but again this may not be a sustainable model if MBS remains at elevated prices (see point one above).
Ahh... a brave soul.... I admire one who puts themselves out there.
Surprised you would say comprehensive of up to 2.00, however I agree. AGNC may have a lot of cr@p on the books they may want to dump on the fed. They'lll have to replace with lower yielding investments or maybe a NLY style buyback?
Q2 showed a EPS loss of -.88. Dare to venture a guess at EPS and Book? (darts acceptable).