Is there any logic to their dividend? I missed their call but heard it was record profit. That is a pretty massive variance of dividend payout and I was wondering if management explained why. Of course the market is not going to like that news.
Don't understand the pair trade when their p/b is very similar. The markets hate for AGNC doesn't appear to be over either. I can see AGNC trading back down to the $23 range in the short term. On the upside, funny how most mreits hit a wall when their p/b gets to 0.9. All just a coincidence I am sure.....
Didn't you just say the 10 yr was going to 3.0% and you were shorting bonds? My god you make my head hurt IWB.
If u want to see bad entertainment tune into fast money these days. CNBC thinks viewers stay awake at night wondering what the 'traders' do when they are not 'trading'. Like I tune into CNBC to watch Scott 'call me judge' Wapner explain how much he likes to cook and watch 'action shots' of him behind the stove. I couldn't turn the channel quick enough.
Today was another classic example of stupidity. Someone is actually selling MTGE today huh? Earnings wasn't good enough for ya? 10 yr at 2.42 not low enough for ya?
Hell.....even NLY posted good results. There was a day when that would lift all mreits. It certainly has been a heck of a long time since NLY put up numbers like that. And MTGE still trades at a 10% plus discount to BV. One has to wonder if the S&P keeps sinking how much longer this can go on.
Well last week AGNC was trading in that 11% yield range so apparently the bar is not that high. Now if rates go up significantly the ball game changes but I don't see that happening anytime soon.
Didn't you do that a few months ago? Rates have gone nowhere since.
I still think AGNC will get back to 24 and possibly 25. its p/b was 0.95 last week for #$%$ sake. That puts it around 25. We shall see.
I own WMC as well but, if I were you, I'd buy some AGNC today. 2 big reasons:
1/ AGNC/ MTGE have already reported good results. Not that WMC won't do the same next week but a bird in the hand is better than a bird in the bush (can't believe I used that line).
2/ AGNC/MTGE are much cheaper vs BV.
Having said that, I hope WMC knocks the cover off the ball.
ARR's BV at the start of the year was $4.75 so a 3% YTD move up. Not exactly stellar. Q1 they over-hedged and I guess they took them off in Q2. Let's just say if rates go up this is the last thing I want to own.
I hear you Reik but don't you think the p/b dropped significantly and abruptly. MTGE and AGNC are trading around 87.5 now after great earnings reports. Now the stock market is tanking and yields are coming down.
Very difficult to not think this is a buying opportunity. The only big risk is an unbelievable jobs report tomorrow.
I agree on AGNC but I'll take the 53 cent UTI in MTGE as insurance that the div is not getting cut. The fact AGNC blew out its UTI might have freaked out some investors. Having said that I bought some AGNC at $23 today. I expect a bounce tomorrow but, as u know, mreits have a way of not acting rationally.
BV jumps 4.4% or 95 cents
Net spread income and dollar roll per share rises from 0.59 to 0.72
UTI drops but still strong at 53 cents per share
Looks good but who knows how the market reacts. AGNC got clobbered and MTGE is easier to grind down.
I think he means that AGNC was down 1% when:
1/ 10 yr went down 0.03 to 2.46
2/ net spread and roll income was 85 cents so it will easily cover the 65 cent div
3/ BV jumped 7 per cent in Q2.
Not that logic means much with mreits but today was a head scratcher of a day.