Well since I won our last wager :-) ( u called for 60 cent div from MTGE and I said 70 cents) where do u think the 10 year settles down from here to the end of the year? I'll say it hits below 2.5 before it hits 2.8. Do you agree or disagree?
I think MBS will get hit again prior to the next fed meeting at the end of Oct. But I don't think the fed tapers next month and from there it will be clear sailing for the rest of 2013. The storm is over for now I believe. Now 2014 is another story.
I think it's a fools game to not take advantage of a div run. But hey...to each his own. I am also long wmc and have appreciated today. Simpler approach I guess.
Just don't understand the need for shorting a stock that is going ex this week. I get the long part though and I hope we get more out of MTGE tomorrow.
Agreed but, if you believe there is no taper in 2013, mreits should do well in Q4 and there is your recovery. The funny thing about Q3 is it may turn out that MBS prices end the quarter flat to where they started. In other words the most successful mreits would be the ones that maintained leverage and didn't worry about hedges. The irony of that would be hilarious.
MITT is ex dividend. Why would anyone care about it this week? MTGE BABY. There is no way it should be trading at the same discount as NLY and AGNC.
Or you can avoid both risks and buy the preferred. NYMTP is yielding 9%. Seems like a no brainer if you are trying to avoid risk. This buy and collect stuff is too boring for you though IWB.
Now that trade I think is silly. Tapping out with a 3 cent gain on a day where the PPS should be up? Go ahead.
I saw that. Size makes a difference. Good to be nimble in such a crazy rate environment. They have both been trading at the same discount to BV and maybe that now changes. Happy with the 70 cents and happier with the buy back.
Sure did. Too many other mreits to invest in where management actually has a conference call and explains the strategy. ARR can take those useless 8k reports and stick them. No faith in their ability to stop the BV and dividend bleeding. If this thing gets pushed to a 20% dividend yield again the stock will be trading at $3. Who wants to wait for that.
I think MTGE is trading like there is a good chance it will cut the div to 60 cents.
QE3 has been a disaster but ARR's management played it like boneheads. Kept maximum leverage all the way through and then de-leveraged at the bottom. Wake me up when they actually raise a dividend.
It matches the book value deterioration. Funny how that works. I agree with editda in that that 2 cent div cut was the last straw for me. They are essentially telling the market that they butchered the BV already in Q3.