It is possible the taper will be so watered down and open-end, rates could drop the day of the announcement. hehe What that would do for Mreits?
I have to ask the question, where are they going to get the money for the buyback? If it comes from CPR and leverage remains about the same.... that's fine. If they plan on selling a bunch of 3.5s that originally cost 106 for 101, then GAAP income will suffer (see last 10-Q) and more importantly would have realized losses greatly cutting into taxable income. Then the dividend begins to suffer.
You can probably give a big hardy thanks to carl icahn for his remarks today.
Looks like a rebalanced of the portfolio. A massive sell off of 30 yr and a move to 15 yr generating realized losses (+ hedging losses) of 1 Billion as compared to net interest income of only 400 million. Looks like they are protecting book value at all costs. Taxable income of only 29 cents with a UTI of about 50 cents has the divvy in doubt.
AGNC seems to expect higher interest rates and has aggressively taken action.
Starting in 2014, health insurance plans can't refuse to cover you or charge you more just because you have a pre-existing health condition. However if you want insurance prior to 2014 you can and will be turned down for a pre-existing condition.
The plan I have is a PPO plan with Anthem. I called Anthem at 1-888-537-3304 where they looked up my doc's names. They said they had a list of 557 pages long however I was told all my Docs were "in the network" and that all would take the insurance. I called the doc's office and they told me the same but I guess I really will not know for sure until I try to use the insurance for the first time.
BTW, Anthem sales representatives are swamped and was told it was because of all the Obamacare questions, so expect a wait of about 10 minutes or more.
I will be retiring next year so will be losing my health insurance. I made application to Anthem and my entire family was turned down for what they say were pre existing conditions. Had my doctor to write them a letter saying everyone on the policy is fine but they still denied the application. Asked what my options were and was told I could participate in the Anthem high risk pool at 6k a month... ahh no.
My only option was Obamacare and I had no problems in Kentucky which set up their own exchange. Took me longer to gather the information than to complete the enrollment process, about 30 minutes. Got a good PPO gold policy and paying $400 / mo less than paying now. My Doc says he'll honor the coverage.
So far seems like a deal.
yes I think you have a understanding of velocity of money. But instead of trying to define, look for ways of increasing. QE is one way, but there are others and that requires some legislation ... ACA, immigration, tax reform and a review of free trade agreements.
Reading talking points and hiding under a rock is not an option.
Prices for some people who already buy their own insurance will rise above today's level, however, largely because the health care reform law doesn't allow insurance companies to exclude people with pre-existing conditions, guarantees a minimum benefits package, doesn't allow women to be charged more than men, and limits how much more older people must pay.
don't forget those making over 200k/250k in "unearned Income" a 3.8% tax on interest, dividends, annuities, royalties, rents, and gains on the sale of investments over the threshold.
man, I feel for those hedge fund managers.....
I think you are using a family of four all being adults over the age of 21. Try using family of four with two children. . For example 2 adults and 2 children and 38k of income would have a Unsubsidized annual health insurance premium of $9,869 and a tax credit of $8,151 so the Amount you pay for the premium: $1,719. For 90k of income, the premium would be $9,869, tax credit of $1,319 for out pocket of $8,550.
38K income: $8,151 tax credit... Cost of health premium: $1,719
44k income: $7,364 tax credit... Cost of health premium: $2,506
88k income: $1,509 tax credit... Cost of health premium: $8,360
90k income: $1,319 tax credit... Cost of health premium: $8,550
93k income: $1,034 tax credit... Cost of health premium: $8,835
95k income: $0 tax credit... Cost of health premium: $9,869
95K is over 400% of the poverty level for the household so no tax credit is given.
kff dot org / interactive / subsidy-calculator /
By William L. Watts
Sept. 18, 2013, 2:08 p.m. EDT
NEW YORK (MarketWatch) -- U.S. Treasurys rallied Wednesday, yanking yields lower after the Federal Reserve unexpectedly left the size of its bond-buying program unchanged at $85 billion a month. Economists surveyed by MarketWatch had expected the Fed to cut the pace of bond purchases by $10 billion a month. The yield on the 10-year Treasury note was down nearly 9 basis points on the day at 2.765%, after trading near 2.864% ahead of the Fed announcement
"present value of a future stream of book value"
There is no such thing..... I hoping you are saying " the PV of future stream of cash flows", discounted at a certain rate of return. This would be the theoretical present day price of the stock.
Mreits are only required to distribute 90% of their taxable income to avoid excise taxes on undistributed taxable income.
AGNC has in the past made its policy to distribute 100%.