WHAT FED MOVE?? There is no Fed move. Bernanke said when QE started that it was data dependent. It still is. What Kain misread was the stupidity of the market. But when you're in a high risk business markets will turn against you sometimes. Agnc looks like it has weathered the storm reasonably well. I f we go down another 10% to 21 it's a massive buying opportunity. For those who have no shares now would be a good entry point.
He misread the velocity of interest rate move but not the direction. He made the adjustment to the portfolio to conform with the current environment. Agnc has 48& of its large equity position that is unencumbered or liquid to meet margin calls and large cash needs according to Kain.