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American Capital Agency Corp. Message Board

quadruplemalt 2 posts  |  Last Activity: Mar 24, 2016 5:55 PM Member since: May 7, 2000
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  • Reply to

    totally ridiculous

    by goodguy24xxx Mar 23, 2016 11:07 AM
    quadruplemalt quadruplemalt Mar 24, 2016 5:55 PM Flag

    For comparison, AGNC had total economic return of -2.04% for first two months of 2016 (BV down.86, dividends of .40), EFC had -.28% (BV diown .56, dividends of .50), and WMC had -6.47% (BV down .79, no dividend through Feb).


  • Reply to

    ARCC Prel 14A

    by frontlineinv Feb 22, 2016 9:56 PM
    quadruplemalt quadruplemalt Feb 25, 2016 1:07 PM Flag

    and also .....

    Kipp deVeer, Ares Capital Corporation - CEO [25]


    Sure. In terms of the permission to sell stock below book, that is something that is ordinary course for us at this point and it's something that we have done, I want to say six or seven years now in a row. So really nothing new on that front in that proxy that was filed recently. We think about acquisitions, frankly, as being more interesting today because things are a lot cheaper than they used to be. We are value-oriented. Period.

    I really don't like buying financial assets that we can originate at [97] at prices above book value. It's why we've spent so much money and so much effort building out strong origination. When you do see assets at companies, whether they are controlled by BDCs or by other companies that trade below book, that starts to make us sniff around a little bit and think there is value buying performing asset, generally speaking, at discounts.

    And how do we think about potentially using our stock to do that? We think long and hard. To be honest, we think very cautiously and very carefully about issuing stock below book. We have really done it kind of once on an elected issue below book deal and we did that in advance of buying Allied Capital and that worked out reasonably well for us.

    That was obviously an in the rear view mirror deal that we did it, substantial value to this Company. We generated fantastic returns for shareholders, I think about it much the same way. And I would tell you that back in 2009 when we did that, there was a lot of hand wringing about selling stock below book to do that and I am glad we did it. We will evaluate things on that same basis, i.e., is it good for the existing shareholders? Is it good for the new shareholders that would potentially be buying the stock below book? And, of course, what would we be using it for is pretty critical.


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