After today's rally in bonds, combined with the still shrinking spread, might be a good time for WMC to sell what they can, dump the hedges, and put the $$ a currency other than the L (or maybe buy shares in another, money making reit)
Last announce was on 3/24 (or maybe 23)
maybe book value went up, but earnings could easily be lower.
I think pps action the day before the announcement will tell the story.
Since 4/1, the 30 fixed mortgage has fallen 17 bp while the 2 year note has fallen 4 bp - that is not a profitable trend for MREITs but is a continuation of the trend in q1.
Hopefully hedging costs will fall, but profit from the spread between mortgages and WMC borrowing costs is not favorable.
You may be right - although $.35 seems more reasonable. The spread was very nice in April but this months it keeps shrinking - and with long rates going up, BV will probably suffer, again.
It was easy, yahoo organizes everything and your posts were all short, pithy and contained no info, actually, they were all about same.
gigantoreheblablabla - 22 negative posts on 5/7 - on lots of different companies' boards - looks like you're making good at your new job - shill.
Maybe investors believe that the two ladies at the helm will be better seapeople than than Gavin and crew.
I rebought at close today.
Yes margins are down. But, yes WNR is hurting NTI. As a long time NTI holder I sold when the deal was announced, and I don't think I was alone in this.
It is to WNR's benefit if both their shares and NTI's shares fall in value, and not paying a dividend can also be seen to be benefiting WNR.
The CS determines the margins. The PADD 2 cs was down about 17% q4 '15 to q1 '16.
This quarter, with more output, NTI showed a $11 million shortfall in distributable income while last quarter they had $36 million in di: a -$47 million dollar turnaround.
Someone tell me if WNR is hording our distributable cash.
Don't see why earnings will move up unless WMC has magic hedges. The spread shrank significantly Jan to mid March. BV may be up a bit, but I doubt it. April was an improvement over Jan-March; but, it all depends on their hedging strategy.