% | $
Quotes you view appear here for quick access.

American Capital Agency Corp. Message Board

  • instantwinbutton instantwinbutton Nov 13, 2012 3:53 PM Flag

    MBB is why AGNC is down

    Look @ MBB. MBS is getting hammered. Thats why these MREITS are down. Look at September 13th, see how the fed gets MBS to shoot up in price, then look at november 7th.. and look from there to today.. compare that with AGNC or any other mreit from november 7th to today... Its all about the president getting elected.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • This might have something to do with today's action:

      Obama election sparks ‘DeMarco trade’ November 12, 2012 9:33 pm

      By Stephen Foley in New York and Shahien Nasiripour in Washington

      Investors in the US are marking down the prices of securities backed by mortgages written before the financial crisis, anticipating that the re-election of President Barack Obama presages a new effort to help distressed borrowers refinance their loans.

      The sell-off is being dubbed “the DeMarco trade” after Edward DeMarco, acting director of the Federal Housing Finance Agency. The Obama administration has quietly told housing industry activists in recent weeks that he will be replaced as head of the agency that supervises government-run mortgage finance agencies Fannie Mae and Freddie Mac.

      Mr DeMarco has repeatedly clashed with the administration over its hopes of using Fannie and Freddie to enable more borrowers to write off part of their mortgage debt, a move called “principal forgiveness” that officials believe could stimulate the housing market and the broader US economy.

    • That plus NLY buying CXS. They just told the world that residential MBS are gold colored turds.

      • 1 Reply to olee2116
      • MBS dropping in price is a two way street.
        Some unrealized gain and book will disappear.

        But in cases like NLY this helps them because they don't have to buy super over priced MBS.
        NLY took in 9.9 BILLION in prepays last quarter.. they gotta go spend that money on new MBS.

        It helps AGNC to, but AGNC isn't bleeding to death from it's CPR rate so it's a bit more muted.

        Anyhow MBS staying at it's highs for a long time would be bad news for mreits.
        If they accrue high priced MBS for a number of years, when that MBS drops, they will be underwater on their portfolio.

19.82Sep 26 4:00 PMEDT