Ginnie Mae TBAs finally outperform Fannie Mae TBAs
Investors are switching out of Ginnie Mae TBAs and into Fannie Mae TBAs. Mortgage REITs are big users of TBAs, quickly increasing or decreasing exposure.
TBAs have been increasingly sensitive to actions taken out of Washington to increase access to credit and mortgage REITs adjusting their portfolios.
Mortgage rates lag the moves in the bond market. Investors realize that absent the developments in Europe, rates should be increasing, not decreasing.
Janet Yellen’s testimony emphasized that growth continues in the US, despite some weakness in the housing sector.
Bonds took Janet Yellen’s Humphrey-Hawkins testimony as somewhat dovish, and rates fell accordingly.
Walmart and TJX announced wage hikes, partly due to state-mandated minimum wage increases, as well as to reduce turnover and retain talent.
The FHFA House Price Index breaks down home price appreciation by region and by state.
While most indices showed the housing market bottoming out around February 2012, the FHFA House Price Index showed it bottoming out around May 2011.
The FHFA House Price Index only looks at houses with mortgages guaranteed by Fannie Mae and Freddie Mac.
Mortgage REITs, especially agency REITs such as Annaly Capital (NLY) and American Capital Agency (AGNC), are exposed to rate volatility.
Book values per share are generally lower than they were when the taper tantrum began, even though rates have moved back close to prior levels.
Mortgage REITs such as Annaly Capital can generate outsized returns over the long haul. Part of this is due to the mortgage-REIT tax structure.
When it comes to ratings, 90% of analysts have rated ETE as a “buy” and 10% have rated it as a “hold.” There are no “sell” recommendations for the company.
We’ll discuss how Energy Transfer Equity’s (ETE) stock has performed in the market. We also take a look at the performance of its subsidiary companies.
ETE announced a cash distribution of $0.45 per unit or $1.80 per unit annualized. This represents an increase of ~30% as compared to a year ago. This is the ninth consecutive quarterly increase.
Pro forma for the merger, Energy Transfer Partners (ETP) will become the second-largest MLP, after Enterprise Product Partners (EPD).
The merger with Regency Energy Partners reinforces Energy Transfer Partners’ position as “one of the strongest…energy midstream companies in the U.S.”
Regency Energy Partners (RGP) and Energy Transfer Partners (ETP) announced that the two companies will merge.
Energy Transfer Equity (ETE) reported its 4Q 2014 financial results on February 18. Limited partner interest in the net income was reported as $111 million.
Ginnie Mae TBAs lost 11 ticks, while Fannie Mae TBAs lost only 9 ticks. This is a function of continued low rates and also changes out of the FHFA.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.