Capstead Mortgage (CMO) Breaks To New 52-Week Highs; Benefiting From Lower Fed Funds Rate
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Price: $6.50 --0%
Rating Summary:
6 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
6 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Capstead Mortgage (NYSE: CMO) is trading up 7% today to a new 52-week high. Yes that\'s \'mortgage\' and \'high\' mentioned together. What could possibly be going on?
After the close yesterday, Capstead declared a fourth quarter 2007 dividend of 24 cents, this was well above the four cent dividend paid over the last three quarters.
Capstead is benefiting from improvements in financing spreads and net interest margins on their investment portfolio due to the recent reductions in the federal funds target rate. Capstead also benefited from slowing mortgage prepayments, which favorably impacted asset yields.
Today Keefe, Bruyette and Woods added the stock to its Best Idea list, saying it is positioned to benefit materially from the expected decline in interest rates in 2008.
Other mortgage REITS that are benefiting from the fed rate cuts are Annaly Capital Management (NYSE: NLY), Anworth Mortgage Asset (NYSE: ANH) and MFA Mortgage Investments (NYSE: MFA).
After the close yesterday, Capstead declared a fourth quarter 2007 dividend of 24 cents, this was well above the four cent dividend paid over the last three quarters.
Capstead is benefiting from improvements in financing spreads and net interest margins on their investment portfolio due to the recent reductions in the federal funds target rate. Capstead also benefited from slowing mortgage prepayments, which favorably impacted asset yields.
Today Keefe, Bruyette and Woods added the stock to its Best Idea list, saying it is positioned to benefit materially from the expected decline in interest rates in 2008.
Other mortgage REITS that are benefiting from the fed rate cuts are Annaly Capital Management (NYSE: NLY), Anworth Mortgage Asset (NYSE: ANH) and MFA Mortgage Investments (NYSE: MFA).
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