WMC

Mortgage REITs Feeling the Pain

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We published our extensive bear thesis on the mortgage REIT industry Monday–‘The Mortgage REIT Business Doesn’t Work…‘–, and when the markets opened for trading Tuesday, the entire mREIT group came under intense selling pressure, with American Capital Agency (AGNC) leading the charge lower. Key moves: American Capital Agency (-4.73%), Annaly (NLY -3.47%), Two Harbors (TWO -2.87%), Anworth (ANH -2.08%), Western Asset (WMC -3.75%), Apollo Residential (AMTG -5.43%), Invesco (IVR -4.22%), MFA Financial (MFA -2.2%). The 10-year Treasury added another 14 basis points today (2.15%), while the 30-year Treasury added 13 basis points (3.31%)–source. The primary driver behind our negative thesis on the mortgage REITs rests on the continuation of higher interest rates, and the eroding of the group’s net asset value via net unrealized losses (negative OCI) … Read more

The Mortgage REIT Business Doesn’t Work…

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Key Takeaways: ·         The good times are over for mortgage REITs. o       Mortgage market dynamics are inherently difficult to predict. o       A flatter yield curve has negatively impacted net interest rate spread income across the entire mortgage REIT universe. We’re already seeing deteriorating gross ROE’s from some of the largest industry constituents. o       The Fed has only caused a marginal tightening in mortgage spreads, and in our view, a marginal widening due to reduced Fed activity (if/when it happens) is perhaps the best-case scenario as it relates to spread income for the group. A continuation of spread tightening is likely the base-case scenario, which is negative for the group. o       Net interest rate spread income and gross ROE’s will only be materially enhanced … Read more

Dividend Increases/Decreases for the Week December 18

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Below we provide a list of firms that raised their dividends during the week ending December 18. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week ABM Industries (ABM): now $0.19 per share quarterly dividend, was $0.185. Acme United (ACU): now $0.13 per share quarterly dividend, was $0.12. Advanced Energy Industries (AEIS): now $0.10 per share quarterly dividend. Algoma Central Corporation (AGMJF): now CAD 2.65 per share special dividend, was CAD 0.12. Amgen (AMGN): now $1.76 per share quarterly dividend, was $1.60. Artis Real Estate Investment Trust (ARESF): now $0.04635 per share … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Dividend Increases/Decreases for the Week of October 27

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Below we provide a list of firms that raised their dividends during the week ending October 27. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          AbbVie (ABBV): now $1.55 per share quarterly dividend, was $1.48. Adecoagro (AGRO): now $0.1649 per share semi-annual dividend, was $0.1626. American Electric Power (AEP): now $0.88 per share quarterly dividend, was $0.83. Amphenol (APH): now $0.22 per share quarterly dividend, was $0.21. Associated Banc-Corp (ASB): now $0.22 per share quarterly dividend, was $0.21. Atlantic Union Bank (AUB): now $0.32 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week Ending December 18

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Below we provide a list of firms that raised/lowered their dividends during the week ending December 18. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week ADT (ADT): now $0.22 per share quarterly dividend, was $0.21. AES (AES): now $0.11 per share quarterly dividend, was $0.10. Amgen (AMGN): now $1.00 per share quarterly dividend, was $0.79. Apollo Commercial (ARI): now $0.46 per share quarterly dividend, was $0.44. Apollo Residential Mortgage (AMTG): now $0.50 per share quarterly dividend, was $0.48. AT&T (T): now $0.48 per share quarterly dividend, was $0.47. Boeing (BA): now … Read more