Look up the fourth quarter of 2010. AGNC increased book value and paid a $1.40 dividend. Also during Q4 2010, the 10 yr tsy went up from 2.51% to 3.30%. So while interest rates rose... AGNC made money and increased book value. Huge rate move and they made money.... So don't be so sure that they can't do it again.
From $23.43 to $24.24. They also paid a $1.40 dividend. I'll say that again, rates went from 2.51% on 10 yr tsy to 3.3% on 10 yr tsy and AGNC had a positive book value return and a $1.40 dividend.
I am confused. I bought this from a friend who said it would be $33 by Christmas. It's Christmas.. Who do I call to get my $33?
April Fools. oh wait.. Wrong holiday.
I know, right? Am I dreaming? We should make this a holy day or something. Where is the #$%$ calender. Brb.
AGNC is undervalued compared to MTGE. The spread is $1.75, but the book value is $2.90 difference and AGNC had more buybacks this quarter than MTGE so... Sure, factor in the new MSR buy and the non-agency appreciation.. but still AGNC to MTGE spread should be $2.00 to $2.50 surely... not $1.75...
#$%$ mtge, i left and went AGNC at a better spread. Sold MTGE at $18.20 to $18.16 and bought AGNC @ 19.93, 20,000 shares.
LOL. First you get the money, then you get the message board, then you get the girl chico.
but MTGE will beat AGNC today in terms of performance. The stock will hold up much better.
lol . no. does not work that way. but thanks 4 the laughs. 10 yr going to 3.5 pct to 4.0 pct range by middle of 2014.
If he is so bearish on interest rates.. it would be better if he went short 10-Year Treasury Note Futures. I did. I'm short 2 contracts. (Represents $200,000 in treasuries)
yep and i put the treasury hedges back on.. i'm short 2 contracts of the ten-year treasury note futures.
Not like anyone cares... but swap strategy is kicking #$%$ again =)