yeah but this discount is huge and the sensitivity MTGE has to rates is going to be very low.. book will hold up very well especially with the non-agencies offsetting much of the agency declines. Not to mention the MSR servicer buy and the move into MSRs
The stock is broken. Don't worry though.. i'm sure there will not be a shortage of muppets buying when they announce the dividend. MTGE will be golden again. The perfect stock headed for new heights. Bipolar market 4 life.
MTGE is all #$%$ up. They have a servicing platform along with that RCs deal. So.. MSRs and the ability to service them. TWO doesn't even have that. MTGE's p/b should be higher than TWOs.
AGNC too slow to buy MSRs.. Non-agency prices at MTGE up significantly quarter over quarter. Q4 book value slightly up due to share repurchases, Non-agency prices.
Buy @ 18.30, sold AGNC @ 19.68.
price to book discount is too large to short. 7 percent mortgage rates mean nav falls to current stock price. also stock pays huge dividend from income earned.
Look, you need to get away from this TBT. It costs you management fees and everything. Go short the 10-Year U.S. Treasury Note Futures.
oh yeah,. and stock buybacks and future SPOs will add to NAV so they can grow NAV despite moves higher in rates or at least do a good job protecting it.
rates are not rising forever. 30 yr mortgage rate is 4.55 percent. if we go up 200 basis points in rates then we will be where we were when fed funds was 4 percent. long rates are going to trade range bound for a very long time then slowly rise back to historical norms after 1.5 yrs ahead of short rates assuming no recession happens. US economy bubble crashes every 5 yrs... just a bubble economy nothing more. inflation basically nonexistent.