Then you must of really loved it when WMC was trading down in the high $13.'s early Oct. I just received a $4,300 quarterly dividend this week. It helps pays for my retired lifestyle.
If BV is important to you, consider AGNC trading now at 90% of BV. Park it there and get the monthly dividends while you wait for low $14's
Financings are Up 23% from the prior report, that's true but keep in mind that the reported refinancings are down 10% year over year.
Ok, understood. We'll see how that goes. BTW what are they hedging with? Treasury futures?
Comparing prices on Sept 30th to June 30th, long term treasuries increased in value. However MBS slightly declined in value as 15 and 30 year % mortgage rates were slightly higher on Sept. 30 from prior quarter. So I don't think there was much of a crash in MBS during 3rd quarter.
Couple of thoughts here, QE3 will not end until inventory of Bonds and Mortgages that the Fed owns is dealt with. Currently both are providing unknown profits to the fed since they are reinvesting all maturing instruments. This ammunition that the Fed is holding is unlike anything we have seen in other world central banks. Government support to ethanol production is crazy and pushed up farm production of corn and corn pricing. Health care costs have been increasing for me since I retired in 2002 when I had to begin paying for it myself. I had minimum 15% increases each year. As of this year, I started Medicare and I have noticed that there has been no increase in part A&B ($104.90) 2014 and will not increase next year. That seems to stick out to me as a plus given all that I have paid for in the past through private insurance. I still have to pay health insurance (not medicare) for my wife since she is younger but her costs went down last year for the first time.
Excellent presentation. Best I have seen on the Mreit industry prospects for the coming years. I have copied and kept all of the presentation decks. It felt like I was in college again. I should get course credit for listening to the whole event!
"Capital in the Twenty-First Century" by Piketty chapter 2 - Growth: and Output: Illusions and Realities is a good read.
I am thoroughly enjoying the back and forth commentary. Thank you. I find myself more often than not agreeing with the analysis by casadipace77. However jackhilr is definitely on top of the latest news and that is appreciated as well. Growth is inevitable as long as their is population growth. US population will continue to grow for the foreseeable decades ahead. It may only be 1 or 2%, but the US will attract more immigration looking for opportunity to replace our future dying baby boomers. Debt burdens on the US government is at a historical low level and so are the PIGS that we worried about last year. Treasuries around the world have "remortgaged" their debt at much lower interest levels. Question is why bullish on WMC? Rather than an other Mreit? What are the inherent advantages to WMC?
I hate to contradict your harping fear but it was clearly stated by the fed chair Bernaki that the excess trillions would be held until it matures. Currently the Fed is replacing maturing debt with similar debt. There is an incredible amount of income being "booked" by those debt instruments held by the Treasury in the meantime.
This is one issue not to worry about.
REIT sector is prone to major swings in valuation but on a different cycle than most equites. I'd be interested in your thoughts regarding the even more unstable and highly levered mortgage reit sector as compared to the equity reits. Keep in mind the global economy perspective versus the US centered perspective. The investments you make can be placed in the ecomonies and sectors that will benefit most from changing directions/trends.
Looking at Nasdaq website, why did 78,000 shares of WMC trade at $15.11 in after hours trading 5:10PM on 9/4? That's 6 cents above closing price. Just curious. It looks like unusually high volume among Mriets.
It's been a while but I just bought 500 more today. Now my average weighted cost is $15.45 on my entire 5,000+ shares. I'm still holding some shares purchased last year. I do not see the downside in wmc dividends for next two quarters. I guess I have to rate it a buy, huh?
I think US mortgage rates have another leg down to go in 3rd quarter and will result in pushing up WMC BV as MBS/CMBS values increase. Global demand for safe and sovereign yield is accellerating wouldn't you say?
It's a shelf registration. This is done to allow companies to do an offering whenever they like. If they do an offering, it will still need to be announced and that can be done anytime. So this stock sells for more than book value. An offering at a price above book value will be accretive which is nice. NYMT knows this and may do it. Book value is $6.83 as of June 30th. Today's price is more than a dollar above that. I am ready to buy more if they actually announce an SPO. Just makes sense.
Boring earnings but they "cover the dividend and then some". 13% yield, okay. Book value up 3%, okay, prepayments not too bad 4%, primarily Agency MBS safe but boring, interest rate spread basically the same, so just stick with the plan and troddingly earn the dividends and a year end bonus hopefully. It's a hold for me.
NYMT is my largest stock holding. I own 6 other Mreits. I think it will be more expensive tommorrow but still worth purchasing if you don't already have some..
I like the earnings report and expect the dividend to be increased somewhat when it is announced later.