Reik do you like ARCC or TCPC better.
I bought some ARCC.
The thing is I'm not sure I want to be holding secondary flips on two BDC's at once.
Would you swap?
BTW, busy week, so probably gonna be quite out of me on the forum.
Nice work. I just got online and am looking at 15.93.
I think I'm gonna sit tight and see if I can catch any dips.
"Thank god. Now it can go up."
Hahaha.. gave me a good laugh while drinking my coffee.
IWB, not sure asset yield will improve.
I was in a 5 year arm.
Once in the adjustable period, it was MArgin + 1 year CMT.
Go look at the chart for 1 year CMT on bankrate.
Today it's at 0.12.
Basically it's almost ZERO.
So if I still had my arm and it reset at the end of the month it would be the Margin + %0.12.
The thing is that 1 year CMT or any of the other things used to reset ARMs each year are not going anywhere until short term rates rise.
RESETING ARMS IS NOT GOING TO IMRPOVE THE ASSET YIELD.
Unless you have some magic math to show it is??
Reik, took a small stake of 3K shares for about 15.905.
Gotta run some errands.. will see how it is when I get back.
If it drops, will add more.. if it goes up I'm done.
"1 year CMT was about 5% in 2005,06,07. Sounds like a good hedge for when short term interest rates start to go up."
Should be ye. But the fed keeps pushing out when they want to raise rates.
I refinanced in March of this year with the thinking being the fed was possibly going to start raising short term sometime in 2014 and wanted to get out of my ARM before rates rose.
Fast forward to now and it's looking like 2016/2017 for the fed to raise short term rates.
I guess if there is any upside news the 1 year CMT really can't drop any more or it will really go to ZERO!
"Wait until ARR cuts."
Ye I'm really waiting for them to announce.
Their earnings was abysmal and if they de-leveraged like JMI it's just another strike against the dividend.
Poop. I forgot about the fed meeting this week.
Guess I will try to unload at least a portion of the ARCC and TCPC before the fed minutes Wednesday.
Happy Monday morning. TCPC @ 16.40 +0.29 (1.80%)
How did you make money on HTS if you bought it at 16.49?
Your the one person who sold at 16.50 today?
Your pretty suspect there IWB.
You should go calculate what you would have made if your split your money on the ARCC and TCPC Secondaries.
ARCC is break even.
TCPC is killing it.
Out TCPC @ 16.41 due to fed meeting this week.
I'm chickening out and bailing now.
Still holding the ARCC secondary.
Cheers and as usual thanks for posting about the secondaries.
"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."
This all makes sense if your holding long term.
You are looking at the bigger picture and how it may effect the stock long term.
But you will be out of the stock by the end of the week and have convinced yourself something else is better.
Hi Hatedaft. I also doubt they will taper.
But if they are showing different data like maybe 6 people wanted to taper this time, or they put up a concrete taper timeline it might move treasuries and mbs.
At the end some of it might just be ROI ye?
At least in ARR's case their earnings were abysmal.
JMI at least looked like it had a leg to stand on.