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American Capital Agency Corp. Message Board

  • onion1273 onion1273 May 3, 2013 3:05 PM Flag

    reduced mREIT holdings today.

    Didn't sell AGNC yet.
    Sold a few others some at gains some at price loss
    But all gains on a total return basis.
    I am not liking the sector especially with talk of QE reductions.
    Actually the whole market is scaring me a bit.
    With all that money coming out of called preffys on top of this
    I have tons of dry powder.
    have not been this liquid in years

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    • I agree the whole market is SCARY. But, QE will not reduce or end any time soon, if anything they should raise it within a year..Some stocks are cheap... forget these reits for a while, they are just a part of a portfolio....I had three reit positions , now two , all green , will stick to them all year for the cash flow.
      Have a look at pms, grow some balls and get some or at least one related product, ..USLV,PZG,EXK, AG, if you want some dividend NEM, PAAS.
      In the next 12 month.
      You can stay out of the market and make O
      YOu can hold reits and make 10%.
      Those up there will make 10% to 100%

      • 1 Reply to arwen_imaginary
      • QE has been cut back and the MBS pricing weakness is proof. If they wanted MBS yields to stay where they are at the FED's would have increased buying, THEY DIDN'T. In fact, they do not buy the whole amount per month that they stated in their QE statement, the statement said UP TO the Max. Amount, they haven't been hitting the MAX. They have made statements that they think Leverage it too high, M-REITS have grown too big and that more regulations may be needed as Government is Dominant Holder of Agency MBS but M-REITS are growing on them. Hence, if they want M-REITS to slow, all they have to do is what they did in first quarter, TRIM THEIR PURCHASES. The price weakness was miniscule but look at the damage they did to the highly leverage TOP GUN M-REITS. Awesome.......This is FED educating the little yield suckers out in the market. Why would they do that, I believe it is just giving fair warning that FED will be eventually unwinding its MBS portfolio over next 5-6 years. Demographics is the reason. This country is shifting to an economy with over 55 baby boomers will be growing exponentially and the pension funds in the private and public sector are grossly underfunded. They cannot supply the pension promises unless SAFE yields rise back to 5-7%, hence, look for unwinding and slow rise in rates. You could see yield spread drop 75% -100% in some cases, which implies a 0-1% yield on M-REITS. The leverage and the high yields on the equity ownership will essentially go to zero was rates rise on TREASURY YEILDS.

    • Onion I sold all but bottom buy MAIN yesturday and it feel good. I stand at 65% cash and will only GLAD atrade a REIT and will never own one at reporting time. With GLAD I can get close to a at quarter Dividend each month but I will dial that back a bit also. I started a nre Preferred osition AGMPRA new issue $24.95 with 5.88% yield

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