i mean 2.5 percent improvement to NAV + future earnings improvement. assumes 10% outstanding share repurchased at 20 pct discount. so agnc bought back 7 pct in q4 ... so the number is a lil less but you can see it has some value to buyback shares.
yeah ur missing something. they sold assets to finance the buyback. so you get about 2.5% on a 20 discount to NAV + improved future earnings.
collect more in yield.. mtge is cheaper but pays the same. agnc keeps cutting at faster rate.
higher duration gap, can take on more risk.. more leverage now that the majority of the move higher in rates is over.. and the added benefit of the MSRs... so higher ROE, higher dividend going forward.. if not this quarter... then next.
yep.. exactly.. gotta give the muppets something to believe in... "Hey wow a years dividend already declared, lets buy that because it's safe" They will just pay out of book value if they can't cover i guess.. not like they care. I suppose they will just let leverage go up to 20x if needed to keep the dividend level... book to erode.
Looking forward to a no taper announcement and tomorrow's 0.70 dividend
yeah, because everyone knows their distribution income that far out right? #$%$ book value, pay a fixed.rate forever and who cares about leverage ratio until margin call equity gone ... they suck.
No. MTGE will maintain but AGNC will cut and that is where u get the change of performance.. AGNC will under perform.
I still have MTGE and it's been an entire day.. it's a start.. lol. No I actually believe that MTGE is about to make a sling shot up this week over other mREITs.
yeah.. i had the HTS buy correct when i left MTGE.. i came back because of what i saw at ANH.. scared me out of my HTS position... ARMs spreads are too small and the performance has been #$%$. Better to hedge with swaptions or MSR to avoid the negative convexity and stay with fixed rate mbs.