Capstead Mortgage Corp

Most Recent

  • uploads///NLY book value
    Earnings Report

    How’s Annaly Capitalizing on Commercial Real Estate?

    By investing in commercial real estate, Annaly Capital is increasing its returns. At the same time, it’s taking on credit risk.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC leverage
    Earnings Report

    Why Did American Capital Agency Increase Its Leverage?

    American Capital Agency increased its “at risk” leverage ratio in 1Q16. It funded its balance sheet with ~$41.9 billion in repurchase agreements.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC Book Value Per Share
    Earnings Report

    AGNC’s Book Value per Share Rose despite the Brexit Vote

    American Capital Agency’s book value per share rose from $22.09 in 1Q16 to $22.22 in 2Q16—the first increase in the book value per share in six quarters.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY book value
    Earnings Report

    Annaly Capital Increased Its Leverage Ratio: What You Need to Know

    Annaly Capital’s (NLY) book value per share fell from $11.73 in the fourth quarter to $11.61 in the first quarter.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC Book Value Per Share
    Earnings Report

    American Capital Agency Saw another Drop in Book Value per Share

    American Capital Agency’s (AGNC) book value per share fell from $22.59 in the fourth quarter of 2015 to $22.09 in the first quarter. Why?

    By Brent Nyitray, CFA, MBA
  • uploads///NLY book value
    Earnings Report

    Why Annaly’s Book Value per Share Fell in the Fourth Quarter

    Annaly Capital’s (NLY) book value per share fell from $11.99 in the third quarter to $11.73 in the fourth quarter.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC Q portfolio
    Earnings Report

    Highlights of American Capital Agency’s Portfolio

    During 3Q15, American Capital Agency’s balance sheet fell from $62.9 billion to $62.2 billion in assets. At the end of the quarter, 30-year fixed-rate mortgages accounted for 66% of the portfolio.

    By Brent Nyitray, CFA, MBA
  • uploads///REITs Total Return
    Macroeconomic Analysis

    Real Estate Remains Weak but Rents Rise Faster than Inflation

    The benchmark iShares Dow Jones US Real Estate ETF (IYR) comprises 114 stocks. We can divide the ETF by market capitalization.

    By Arthur Penn
  • uploads///Top  Stocks in Subgroups
    Macroeconomic Analysis

    Only 7 IYR Stocks Earned Positive Returns in Mid-July

    Major stocks in the top five REIT subgroups that saw positive returns over the week ended July 17.

    By Arthur Penn
  • uploads///AGNC Q portfolio
    Earnings Report

    American Capital Agency Initiates Ginnnie Mae Positions in 1Q15

    American Capital Agency tends to stick to fixed-rate MBS. This makes the company similar to Annaly Capital Management (NLY).

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Economic strength lifts the 10-year bond yield higher

    Overall, we’ve seen the 10-year bond yield pick up 41 basis points over the past two weeks. US data was on the strong side, especially the JOLTS report.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs sell off with bonds: What you need to know

    The Fannie Mae 3.5% TBA started the week at 105 22/32 and gave up 22 ticks to close at 105. The ten-year yield increased 32 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Initial Jobless Claims
    Financials

    Initial jobless claims are back at boom-time levels

    Initial jobless claims are one of the few labor market indicators released every week. Unemployment is a profound economic growth driver.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC Q portfolio
    Earnings Report

    Why American Capital Agency shortened duration during the quarter

    As one of the largest agency REITs, American Capital Agency (AGNC) invests primarily in mortgage-backed securities that are guaranteed by the US government.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC Book Value Per Share
    Financials

    American Capital Agency’s book value per share increases

    American Capital Agency’s (AGNC) book value per share increased from $25.54 in the third quarter to $25.74 in the fourth quarter.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs pick up 20 ticks as bonds rally

    The Fannie Mae 3.5% TBA started the week at 105 2/32 and picked up 20 ticks to close at 105 22/32. Bonds rallied 16 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    The 10-year bond yield approaches pre–taper tantrum levels

    Bonds yields have been influenced heavily by European rates since last summer, when rates globally began to fall as the markets speculated about further QE.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed dot graph Dec
    Financials

    Stocks fall and bonds rally in the FOMC statement

    Yesterday, the Federal Reserve ended its September FOMC meeting. It changed its language regarding interest rate normalization going forward.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs follow bonds higher and pick up 7 ticks

    The Fannie Mae 3.5% TBA started the week at 105 1/32 and picked up 7 ticks to close at 105 7/32. Bonds rallied 4 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Unemployment Rate
    Financials

    Unemployment Falls In December

    The unemployment rate is probably the most visible and important economic indicator in the United States. It fell 20 basis points to 5.6% in December.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    New FHA guidelines throw Ginnie Mae securities for a loop

    Ginnie Mae TBAs rallied 9 ticks to close at 105 20/32. However, they underperformed Fannie Mae TBAs, which rallied 17 ticks.

    By Brent Nyitray, CFA, MBA
  • uploads///GN FN spread
    Real Estate

    The markets react to new insurance guidelines

    After Obama announced the new insurance guidelines, the mortgage-backed securities market, especially the TBA market, reacted violently.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Real Estate

    Do REITs need to fear another refi wave?

    It looks like the MBA refinance index is still flat on its back. So while we could see a pickup in refis, so far it hasn’t materialized.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed Assets
    Financials

    The Fed maintains its policy on reinvesting QE assets

    The Fed’s decision to reinvest QE assets in the markets affects REITs. It keeps a bid under TBAs, and it supports MBS values in general.

    By Brent Nyitray, CFA, MBA
  • uploads///Hourly Earnings
    Financials

    How much slack is there in the labor market?

    Leading indicators of the the labor market are flashing bright green. These data indicate the job market is in a transition period and about to accelerate.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae securities rally, driving mortgage REITs

    The ten-year bond sold off, with yields increasing from 2.16% to 2.25%. Ginnie Mae TBAs rallied to close at 104-19.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae TBAs Shrug Off the Bond Market Sell-off

    Ginnie Mae TBAs are where government loans go, such as the federal housing administration and veterans affairs loans.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed dot graph Dec
    Financials

    December FOMC Statement Cheers Stock Investors

    Yesterday, the Federal Reserve ended its September FOMC meeting. It changed its language regarding interest rate normalization going forward.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae Securities Follow Bonds Higher, Affecting REITs

    Ginnie Mae and the to-be-announced (or TBA) market The Fannie Mae to-be-announced (or TBA) market represents the usual conforming loan, the plain Fannie Mae 30-year mortgage. Meanwhile, Ginnie Mae TBAs are where government loans go, such as the federal housing administration (or FHA) and veterans affairs (or VA) loans. The biggest difference between a Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Macroeconomic Analysis

    Employment Rises, Labor Force Participation Rate Remains Unchanged

    The unemployment rate has been falling, so why doesn’t the average citizen feel better about the economy? The reason is the labor force participation rate remained unchanged at 62.8% in November.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Macroeconomic Analysis

    Ginnie Mae TBAs Not Immune To Bond Market Sell-off

    The ten-year bond had a big sell-off, with yields decreasing from 2.16% to 2.34%. Ginnie Mae TBAs fell as well, dropping from 104 19/32 to 104 7/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae TBAs Hit By Declining Bond Market

    The Fannie Mae 3.5% TBA started the week at 103 28/32 and gave up 14 ticks to close at 103 14/32.

    By Brent Nyitray, CFA, MBA
  • uploads///ADP Payrolls
    Macroeconomic Analysis

    ADP Payroll Report Is Published: Are Forecasts For Friday Too High?

    If the payroll numbers on Friday come in better than expected, a sell-off in bonds can raise interest rates further as investors bet on recovery and the the timing of “normalization,” the Fed’s term for raising rates off the zero bound.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Macroeconomic Analysis

    Fannie Mae Securities Follow Bonds Higher

    As a general rule, a lack of volatility is good for mortgage REITs, which hedge some interest rate risk. Increasing volatility in interest rates increases the cost of hedging.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Real Estate

    The End Of Quantitative Easing Could Make Mortgage REITs Vulnerable

    Big agency REITs like Annaly (NLY) and American Capital Agency (AGNC) took the chance to deleverage their balance sheets after the warning in the spring of 2013.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed Assets
    Financials

    Quantitative Easing Is Over, But What About The Fed Balance Sheet?

    The “elephant in the room” at the Fed is that rates need to return to more normal historical levels at some point. This will be in the context of a massive Fed balance sheet. This creates issues on many different levels.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae Securities Buck The Recent Trend And Rally

    Ginnie Mae and the to-be-announced market The Fannie Mae to-be-announced (or TBA) market represents the usual conforming loan—the plain Fannie Mae 30-year mortgage. Meanwhile, Ginnie Mae TBAs are where government loans go—such as the federal housing administration (or FHA) and veterans affairs (or VA) loans. The biggest difference between a Fannie Mae mortgage-backed security (or […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae Securities Sell Off With Bonds To Close At 103 12/32

    Fannie Mae and the to-be-announced market When the Federal Reserve talks about buying mortgage-backed securities (or MBS), it’s referring to the to-be-announced (or TBA) market. The TBA market allows loan originators to take individual loans and turn them into a homogeneous product that you can trade. TBAs settle once a month. Fannie Mae loans go into Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    Are lower rates enough to trigger another refinance wave?

    The increase in rates has basically put prepayment worries on the back burner for REITs. The lack of a reaction in the refinance index on the back of a drop in rates could mean we’re finally seeing prepayment burnout. This would be good news for REITs.

    By Brent Nyitray, CFA, MBA
  • uploads///Employment Cost Index
    Healthcare

    It appears affordable care isn’t adding to employment costs

    These days, the Fed isn’t all that concerned about inflation raging out of control. Indeed, it would like to see higher inflation.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae securities follow bonds higher, closing at 104 15/32

    The ten-year bond rallied, with yields increasing from 2.34% to 2.3%. Ginnie Mae TBAs followed the trend, rising from 104 12/32 to 104 15/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securities rally with bonds, closing at 103 17/32

    The Fannie Mae 3.5% TBA started the week at 103 1/4 and picked up nine ticks to close at 103 17/32. Market participants may also be forecasting less volatility in interest rates.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY book value
    Real Estate

    Annaly CEO Wellington Denahan is optimistic about the end of QE

    Annaly was less leveraged than its peer group, with a debt-to-equity ratio of 5.4:1. At the end of Q213, the leverage ratio was 6.2:1, so Annaly delevered pretty aggressively.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY leverage
    Financials

    Annaly bumps up its leverage in 3rd quarter 2014

    How do agency REITs pay such high dividends while investing in securities that don’t pay much? Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), MFA Financial (MFA), Capstead (CMO), and Hatteras (HTS) tend to have high dividend yield. Yet agency mortgage-backed securities don’t pay low-double-digit returns. To achieve these sorts of returns, REITs—particularly agency […]

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Ginnie Mae securities shake off the end of quantitative easing

    The ten-year bond sold off, with yields increasing from 2.27% to 2.34%. Ginnie Mae TBAs bucked the trend, rising from 104 20/32 to 104 25/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securities defy the bond sell-off, rising by an eighth

    Fannie Mae MBS fell slightly as the bond market sold off as investors added risk. The Fannie Mae 3.5% TBA started the week at 103 16/32 and picked up an eighth to close at 103 12/32.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC dividend
    Real Estate

    American Capital Agency’s 3rd quarter earnings: Company overview

    American Capital Agency is one of the biggest REITs in the U.S. by market capitalization. Annaly Capital Management is the other. As such, AGNC is one of the biggest ultimate lenders in the mortgage market.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Real Estate

    Why Ginnie Mae securities followed bonds lower

    The ten-year bond sold off, with yields increasing from 2.19% to 2.27%. Ginnie Mae TBAs followed, dropping from 104 23/32 to 104 20/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Real Estate

    Fannie Mae securitires sell off as bonds reverse their course

    Fannie Mae MBS fell slightly as the bond market sold off as investors added risk. The Fannie Mae 3.5% TBA started the week at 103 24/32 and lost a quarter to close at 103 16/32.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield historical
    Financials

    Why you should think about the direction of interest rates

    Mortgage REIT investors have finally gotten a taste of what interest rate risk looks like over the past year. For most of the past 30 years, bonds have been a one-way bet.

    By Brent Nyitray, CFA, MBA
  • uploads///CYS Dividend
    Financials

    Mark-to-market losses force CYS Investments to cut its dividend

    This also means a REIT will experience a volatile dividend. Most corporations loathe cutting their dividend because of the message it sends to Wall Street, so volatile dividends are generally rare. For REITs, they’re a fact of life.

    By Brent Nyitray, CFA, MBA
  • uploads///CYS Dividend
    Financials

    CYS Investments: An important mid-sized agency mortgage REIT

    CYS Investments (CYS) is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security (or MBS) space.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae securities catch a bid on the bond rally

    Ginnie Mae and the to-be-announced market The Fannie Mae to-be-announced (or TBA) market represents the usual conforming loan—the plain Fannie Mae 30-year mortgage. Meanwhile, Ginnie Mae TBAs are where government loans go—such as the federal housing administration (or FHA) and veterans affairs (or VA) loans. The biggest difference between a Fannie Mae mortgage-backed security (or […]

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae securities catch a bid on the bond rally

    Fannie Mae and the to-be-announced market When the Federal Reserve talks about buying mortgage-backed securities (or MBS), it’s referring to the to-be-announced (or TBA) market. The TBA market allows loan originators to take individual loans and turn them into a homogeneous product that you can trade. TBAs settle once a month. Fannie Mae loans go into Fannie […]

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Bonds rally hard on international weakness and a dovish Fed

    The ten-year bond influences everything from mortgage rates to corporate debt. It’s now the benchmark for long-term U.S. interest rates. Note that old-timers might remember when the 30-year bond was the benchmark.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    How will tapering affect the mortgage REITs?

    REITs like Annaly, American Capital Agency, MFA Financial, Hatteras, and Capstead could become vulnerable if the Fed dumps its portfolio of MBS onto the market.

    By Brent Nyitray, CFA, MBA
  • uploads///Unemployment Rate
    Financials

    Must-know: Why the unemployment rate matters to mortgage REITs

    The unemployment rate is probably the most visible and important economic indicator in the U.S. People’s perception of the health of the economy is driven first and foremost by unemployment.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae share of to-be-announced market ticks up with bonds

    The main action driving the to-be-announced market seems to be from Washington, between the Fed purchases and the government’s policies to drive origination.

    By Brent Nyitray, CFA, MBA
  • uploads///MBA Refinance Index
    Financials

    Refinance applications fall in spite of lower rates

    The Mortgage Bankers Association’s (or MBA) refinance index fell 0.3% (from 1,297.5 to 1,293) even as the bond market rallied 4 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities were roughly flat, closing at 105 27/32

    The front-month Ginnie Mae TBAs were roughly flat as bonds rallied four basis points. Ginnie Mae TBAs began the week at 105 28/32 and fell to 105 27/32.

    By Brent Nyitray, CFA, MBA
  • Why Fannie Mae securities sold off to close at 105 3/32
    Financials

    Why Fannie Mae securities sold off to close at 105 3/32

    Fannie Mae MBS sold off a bit on a weak bond market. The Fannie Mae 4% TBA started the week at 104 29/32 and lost about 5 ticks to close at 105 3/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fed  unemployment forecast
    Financials

    Why the September 2014 FOMC meeting offered good news for REITs

    Yesterday, the Federal Reserve ended its September Federal Open Market Committee meeting and decided to continue to reduce asset purchases. It will reduce purchases of Treasuries by $5 billion a month.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities fell to 105 26/32 on a bond sell-off

    The front-month Ginnie Mae TBAs were bid up as bonds rallied eight basis points. Ginnie Mae TBAs began the week at 106 8/32 and fell to 105 26/32. The underlying bond market sold off 15 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads///Labor Force Particiption Rate
    Financials

    REITs must-read: The “yes but” answer to the unemployment rate

    The unemployment rate is the most important data point out there right now, and it has been falling. So why doesn’t the economy feel better to the average citizen?

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae TBAs are unchanged despite a bond market sell-off

    The front-month Ginnie Mae TBAs were bid up as bonds rallied eight basis points. Ginnie Mae TBAs began the week at 106 21/32 and ended up in the same place. The underlying bond market sold off 12 basis points.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Buy the rumor, sell the fact: Rates rise on European asset purchases

    There’s an old Wall Street saw that says you should buy the rumor, sell the fact. Essentially, this means that the market prices in an event before it actually happens.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities caught a bid as bonds rallied strongly

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 26/32 and picked up about an eighth to close at 105 30/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs rally with the bond market

    The biggest difference between a Fannie Mae mortgage-backed securities (or MBS) and a Ginnie Mae MBS is that Ginnie’s have an explicit guarantee from the federal government. Fannies don’t have a guarantee. However, there’s a “wink wink, nudge nudge” guarantee.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Why bonds continue to make strategists look bad

    Last week didn’t have a lot of stuff that could move the bond market, but bonds rallied anyway. Weakness in the Eurozone pushed yields lower and U.S. Treasuries followed along. Finally, tensions in Ukraine also caused a flight to quality which pushed yields lower.

    By Brent Nyitray, CFA, MBA
  • uploads///MFA dividend
    Financials

    Must-know: MFA Financial maintains its current dividend in 2Q14

    REITs will offer volatile dividends. Most corporations loathe cutting their dividend because of the message it sends to Wall Street. So volatile dividends are generally rare. But for REITs, they’re a fact of life.

    By Brent Nyitray, CFA, MBA
  • uploads///MFA Book Value
    Financials

    Must-know highlights of MFA Financial’s second quarter 2014

    MFA Financial reported net income of $0.20 a share. This was higher than the Wall Street estimate of $0.19 per share. Book value per share increased 2.1%, to $8.37 per share.

    By Brent Nyitray, CFA, MBA
  • uploads///NLY dividend
    Financials

    Annaly CEO Wellington Denahan shares her vision for the future

    On the company’s conference call to analysts and investors, Annaly CEO Wellington Denahan addressed the current interest rate environment and where she saw the company heading in the future.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs rallied 3 points as bonds rallied 10 points

    The front-month Ginnie Mae TBAs were bid up as bonds rallied ten basis points. Ginnie Mae TBAs began the week at 106 2/32 and picked up 3 ticks to close at 105 31/32.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Must-know: Why bonds rallied despite weakness overseas

    We’ll see where mortgage rates have been, and we’ll go over the weekly economic data and earnings announcements. Then we’ll look forward to what’s coming up the following week.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae TBAs ended up unchanged on a data-heavy week

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 17/32 and ended up at the same place.

    By Brent Nyitray, CFA, MBA
  • uploads///AGNC dividend
    Financials

    American Capital Agency maintains its dividend of $0.65 a share

    Most corporations loathe cutting their dividend because of the message it sends to Wall Street. So volatile dividends are generally rare. But for REITs, they’re a fact of life.

    By Brent Nyitray, CFA, MBA
  • uploads///MBS tranching
    Financials

    Understanding American Capital Agency versus peers like Annaly

    American Capital Agency (AGNC) is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security (MBS) space.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs sold off 7 ticks as bonds flattened

    The front-month Ginnie Mae TBAs were bid up as bonds rallied ten basis points. Ginnie Mae TBAs began the week at 106 18/32 and lost up just about 7 ticks to close at 106 11/32.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield historical
    Financials

    Why you should pay attention to the long interest rate cycle

    Mortgage REIT investors have finally received a taste of what interest rate risk looks like over the past year. For most of the past 30 years, bonds have been a one-way bet.

    By Brent Nyitray, CFA, MBA
  • uploads///CYS Dividend
    Financials

    Why CYS Investments maintained its dividend in 2nd quarter 2014

    Most corporations loathe cutting their dividend because of the message it sends to Wall Street, so volatile dividends are generally rare. For REITs, they’re a fact of life.

    By Brent Nyitray, CFA, MBA
  • uploads///CYS Leverage Ratio
    Financials

    Why CYS Investments maintained its leverage ratio in Q2 2014

    Because there’s no risk of principal loss—not to be confused with mark-to-market issues—the rate of return for mortgage-backed securities is generally low.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae TBAs rallied with bonds to close at 106 15/32

    The front-month Ginnie Mae TBAs were bid up as bonds rallied ten basis points. Ginnie Mae TBAs began the week at 106 1/32 and lost up just about 7/16 to close at 106 15/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae TBAs catch a bid as bonds rally, driving mortgage REITs

    Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 13/32 and ended up picking up about a quarter of a point.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Fannie Mae securities lose 0.5 points, affecting REITs like Annaly

    Fannie Mae MBS sold off a bit. The Fannie Mae 4% TBA started the week at 106 and ended up losing about half a point.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Why bonds have finally stopped ignoring strong reports

    The bond market broke from its recent pattern of ignoring bond-bearish data and rallying on bond-bullish data. For the most part, the economic data last week was weaker than expected.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae securities sell off with bonds to close at 106 4/32

    The front-month Ginnie Mae TBAs were sold off as bonds tanked on some strong economic data. Ginnie Mae TBAs began the week at 106 23/32 and lost up just about 5/8 to close at 106 4/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities rallied with bonds about 1/4

    The main action driving TBAs specifically seems to be out of Washington, between the Fed purchases and the government’s policies to drive origination.

    By Brent Nyitray, CFA, MBA
  • uploads///PPI
    Financials

    Why falling wholesale inflation worries the Fed and affects REITs

    Given the shaky state of most household balance sheets, the Fed would really like to create inflation, provided it results in increased wages.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities flatlined on a lack of economic data

    The front-month Ginnie Mae TBAs were unchanged as bonds flatlined on the lack of economic data. Ginnie Mae TBAs began and finished the week at 106 5/32.

    By Brent Nyitray, CFA, MBA
  • uploads///Fannie Mae TBA
    Financials

    Why Fannie Mae securities ticked down on a flat bond market

    Fannie Mae MBS followed the bond market higher. Liquidity has been downright terrible in the TBAs lately. The Fannie Mae 4% TBA started the week at 105 10/32 and ended up dropping 1/16.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why Ginnie Mae securities are flat amid a declining bond market

    The front-month Ginnie Mae TBAs worked their way higher as bonds rallied on weak economic data. Ginnie Mae TBAs began and finished the week at 106 17/32.

    By Brent Nyitray, CFA, MBA
  • uploads///ADP Payrolls
    Financials

    Why ADP’s jobs report forecasts the outlook of May’s BLS report

    Interestingly, the ADP employment report provides a very tight correlation with the BLS’s revised payroll numbers. The BLS revises its payroll data twice, and the ADP number comes out before the first estimate.

    By Brent Nyitray, CFA, MBA
  • uploads///Import Price Index
    Financials

    Must-know: Import prices fall, keeping inflation well-contained

    Inflation isn’t the Fed’s biggest concern at the moment. If anything, it’s worried that inflation is too low.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield historical
    Financials

    Investing in REITs during a rising interest rate environment

    We may see the occasional cyclical bond bull markets in the context of a secular bear market, but the overall trend is toward increasing interest rates.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Why flat Ginnie Mae securities and a bond sell-off affect REITs

    The front-month Ginnie Mae TBA drifted went nowhere while bonds sold off slightly. After starting the week at 105 27/32, they finished more or less where they started

    By Brent Nyitray, CFA, MBA
  • uploads///NLY book value
    Financials

    Annaly reports its 1st increase in book value in 6 quarters

    Annaly reported core earnings of $0.23 a share, which was lower than the Street estimate of $0.27 per share. Book value per share increased 1.4%, to $12.30 per share.

    By Brent Nyitray, CFA, MBA
  • Financials

    Annaly presses mortgage-backed securities and increases leverage

    When the Fed hinted at tapering at the June 2013 FOMC meeting, rates began to rise and REITs were clobbered. The hardest-hit were agency REITs.

    By Brent Nyitray, CFA, MBA
  • uploads///Ginnie Mae TBA
    Financials

    Ginnie Mae securities catch a bid as bonds rally, reaching 105 5/32

    The front-month Ginnie Mae TBA drifted higher as bonds rallied. After starting the week at 105 17/32, they added about 5/8 of a point to close at 105 5/32.

    By Brent Nyitray, CFA, MBA
  • uploads/// year bond yield LT
    Financials

    Must-know: Why bonds rallied on weak economic and jobs reports

    Bonds followed through on last week’s rally with another rally. After closing out the prior week at 2.66%, interest rates moved lower in response to the weak first quarter GDP report.

    By Brent Nyitray, CFA, MBA
  • uploads///MBS tranching
    Financials

    Must-know update: American Capital Agency and its background

    American Capital Agency is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security space.

    By Brent Nyitray, CFA, MBA
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