WMC News and Press, Western Asset Mortgage Capital Corporation From 10/30/20

Did the rent get paid? We're at the halfway-point of another newsworthy REIT earnings season. Results thus far have been better-than-expected as dividend cuts have given way to dividend boosts. After 63 equity REITs and 32 mortgage REITs cut dividends in Q2, just three REITs have anno...

MFA faced a very tough 1Q environment and the experienced management team managed through the situation extremely well. MFA Financial sells at about 40% below its reported book value. Book value was scrubbed following the 1Q Mortgage REIT debacle and is thus a fair representation of a...

Q3 2020 is producing some strong results on mortgage REIT earnings. Core EPS, Net Interest Spread, and Net Interest Margins expanded significantly. When the latest wave of COVID-19 cases calms down, investors should be getting excited about earnings. Discounts to book value (or NA...

I am projecting AGNC will report a modest (at or greater than 5% but less than 10%) BV increase for the third quarter of 2020. This projection is mainly due to the minor-modest net price increases in most fixed-rate agency MBS coupons and a minor-modest net valuation gain within AGNC'...

We’re highlighting Western Asset Mortgage Capital Corp., a very rare entry in our columns. We’re highlighting it because shares are in the neutral range. Shares are getting much closer to the target buy range, and are now quite far from our prior Sell ratings. Discou...

Our latest purchase in the sector is PMT. We think PMT is a great choice today following the substantial decline in share price since the Q2 2020 earnings. PMT has underperformed the most similar mortgage REITs lately. Shares dipped all the way into the strong buy range. PMT carries a...

We’re highlighting two good mortgage REITs trading at substantial discounts to book value: CMO and NYMT. We're bullish on both. Each trades at a large enough discount to offer substantial upside, and the portfolio of MBS they carry is capable of performing well in this environm...

Things really fell apart for much of the sector in Q1 with big margin calls and severe book value erosion. Due to the turmoil in the financial markets resulting from the COVID-19 pandemic, management suspended the first- and second-quarter dividend to preserve liquidity. Our curre...

U.S. equity markets finished flat this week as better-than-expected economic data and earnings results were offset by a continued fiscal stalemate and pressure on technology stocks amid a censorship controversy. The S&P 500 managed to eke out a 0.1% gain this week. The Nasdaq 100 ...

We're highlighting the mortgage REITs with more MSRs today: Bullish ratings on CHMI, TWO, PMT, and NRZ. We highlighted several of these REITs together before. It was 04/06/2020 and responses were mixed. Some investors hated the idea of buying at around 30% of book value. Discounts...