Can't believe the coincidence my other large holding NRZ did the same thing on the same day. Very interesting.
The third quarter presentation mentioned that this was a potential future growth area. The ability to borrow as a Bank would have given them more financing flexibility. This will not impact fourth quarter earnings or projected 2016 earnings because it was not built into the projections. Sill it is a disappointment. It may lead to rating downgrades as a knee jerk reaction. Early February earnings report will clarify even more.
During that period Treasuries strengthed and MBS weakened and their yields narrowed. A risk off move. A trend like that cannot continue indefinitely. A reversal could surprise to the upside by first quarter 2016. I'm surprised by today's strength in WMC price given what we saw. Perhaps the market is pricing in 6 months from now when those trends will be no longer be in place.
Wife tried other medicine (expensive too), without success, none,then she just paid $1,620 for three treatments. After first treatment two weeks ago, success. Remaining treatments should be in every four weeks I think. Then once a year treatment at $600 is all that is required to maintain. I think this procedure is a slam dunk that will catch on and push up this stock dramatically within a year.
Given the Feds board is relatively independent (hawks and doves) and not just one individual running it, and given that the Fed has a "dual mandate", I would give this group a passing grade for addressing the goals of the dual mandate and staying on course near term. The Fed is one of the better performing branches of our great disfunctional government and perhaps should not be vilified so much.
Total Reserve Bank assets as of December
31, 2014, were $4.5 trillion, which is an increase
of $0.5 trillion over the balance on December 31,
2013. The Federal Reserve Banks’ 2014 earnings,
inclusive of other comprehensive income, were
$99.7 billion. The Reserve Banks provided for
remittances to the U.S. Treasury of $96.9 billion.
The Feds Balance ($4.5 trillion) sheet items (MBS and Bonds) are earning our country a ton of profit with money that cost nothing. These earnings are 100% pure profit. It is actually reducing the deficit amount in the budget. When they start winding these accounts down, the question is what will happen to the mbs market.
I don't understand your comment that US real estate would be down 40% or so. I do agree with shanghai, asian markets, emerging markets being affected seriously. I don't fear the Fed raising and I think they will by end of year. December, not Sept.
Apartment Reits were beginning to look very good and this IPO was offering the market another Apartment Reit. Seven days of down markets caused them to hold off the IPO. This was announced last thursday, Apartment reits are going to do well in general financially raising rents and market prices and dividends. I suspect it is a matter of time (based on market conditions) until the RMI ticker IPO is brought to market. It is a very small equity reit with about a $100 million market cap. About 20% to be owned by NYMT automatically.
NYMT should let us know what's going on however if they are pulling out of it.
You're not looking too hard then. The big news is out that the Charlotte based REIT ticker RMI IPO has been postponed due to unfavorable market conditions last thursday. NYMT was to contribute real estate to that in return for 20% of the new company and potential for increased and even controlling interest over time. Also, RMI is a RiverBanc offering and Riverbanc is owned in part by NYMT.