Wasn't me, I sold mine at 30.80. I'll get back in, but it will take awhile for the the mortage reits to adjust. Short term they will get hit, but long term they are a buy. It's going to be some time though. Nothing goes straight up or down, so they are playable. Just don't hold to long.
Maybe, but it's best to stay neutral (regarding big bets) at times like these. The point could easily be made that the reaction in the bond market last week was based on fear of something that won't be manifested as perceived, in which case agnc stabilizes and begins moving higher.
Listen to the replay of yesterday's presentation. It provides an easy way to estimate of book value changes with higher short term rates and higher spreads. Book value sensitivity to spreads is quite large. Book value dropped by a large percentage during the first quarter because spreads increased by 15 bps, and AGNC has no way of hedging spreads.
They also indicated that their primary objective is to provide the greatest total return to stockholders, which is the total of dividends paid plus book value changes.
yahutag, Book value doesn't drop because of spreads directly.
Their book value dropped because payups fell and mbs prices dropped so they got a double whammy.
This is clearly explained in their earnings and quarterly presentation as well.
Actually, when you think about it, if there is a new SPO, it'll be priced in this neighborhood, maybe a few nickels higher.
That's if the BV holds. The market seems to think that the Fed is getting off its feeding program, and the MBS market is going to slack, taking the BV of the agency mREITs with it.
So the risk right now isn't the SPO. It's a BV cut and then a SPO, if the shareholders don't bail first.