Western Asset Mortgage Capital (WMC) Reports Q3 EPS of $0.54

Western Asset Mortgage Capital (NYSE: WMC) reported Q3 EPS of $0.54, versus $0.76 reported last year.

COMMENTARY ON QUARTER

"During the third quarter, the fixed income markets continued to experience a high level of volatility, driven by concerns over slower global economic growth and ongoing uncertainty over the timing of when the Federal Reserve would begin to increase interest rates," said Gavin James, Chief Executive Officer of Western Asset Mortgage Capital Corporation. "While our portfolio wasn't immune to the overall volatility in the fixed income markets and, in particular, the U.S. mortgage markets, our diversification and proactive approach to portfolio management enabled us to deliver an approximately break-even economic return for the quarter."

Anup Agarwal, Chief Investment Officer of Western Asset Mortgage Capital Corporation, commented, "For the quarter, we continued to shift our portfolio to include a higher proportion of credit sensitive investments, increasing our credit exposure from approximately 28% of the portfolio at the beginning of the year to just over 38% of the portfolio at September 30, 2015. We believe that these securities offer attractive relative value and are a good complement to our Agency MBS holdings. During the quarter, we primarily increased our holdings in Residential Whole-Loans and CMBS. While our overall securities and loan portfolio experienced additional price appreciation, we were once again impacted by losses on our interest rate hedges as rates moved toward the low end of our expected range. We believe that our disciplined approach to security selection combined with our hedging strategies have and will continue to position us to manage through the current highly volatile interest rate environment."

For earnings history and earnings-related data on Western Asset Mortgage Capital (WMC) click here.

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