UBS Starts American Capital Mortgage (MTGE) at Buy; Actively Managed Hybrid Mortgage REIT
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Price: $19.80 --0%
Rating Summary:
1 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS initiates coverage on American Capital Mortgage (NASDAQ: MTGE) with a Buy. PT $21.00.
UBS analyst says, "Attractive returns on agency carry trade; more risk in non-agency: The steep yield curve and the Fed’s pledge to maintain the Fed Funds at 0-25bp through mid-2013 ensure a profitable agency MBS carry trade, particularly in a weak economy; 60% of capital is allocated to agency MBS. The non-agency strategy consists of two parts: 1) legacy securities; and 2) prime whole loans. The near-term opportunity is buying RMBS, while over the longer term, the strategy should shift to buying whole loans for securitization as the government sponsored enterprise’s (GSE’s) role in the mkt shrinks and the economics are more attractive."
For more ratings news on American Capital Mortgage click here and for the rating history of American Capital Mortgage click here.
Shares of American Capital Mortgage closed at $17.09 yesterday.
UBS analyst says, "Attractive returns on agency carry trade; more risk in non-agency: The steep yield curve and the Fed’s pledge to maintain the Fed Funds at 0-25bp through mid-2013 ensure a profitable agency MBS carry trade, particularly in a weak economy; 60% of capital is allocated to agency MBS. The non-agency strategy consists of two parts: 1) legacy securities; and 2) prime whole loans. The near-term opportunity is buying RMBS, while over the longer term, the strategy should shift to buying whole loans for securitization as the government sponsored enterprise’s (GSE’s) role in the mkt shrinks and the economics are more attractive."
For more ratings news on American Capital Mortgage click here and for the rating history of American Capital Mortgage click here.
Shares of American Capital Mortgage closed at $17.09 yesterday.
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