Nomura Securities on Agency Mortgage REITs: Prepayment Risk Management Is Key to Success
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Price: $10.93 +0.09%
Rating Summary:
10 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on Agency Mortgage REITs: Prepayment Risk Management Is Key to Success
Analyst, Bill Carcache, said, "American Capital (Nasdaq: AGNC) our top pick on superior prepayment risk management; reiterate Buy and $30 PT. Effective prepayment risk management helps the agency mortgage REITs generate higher returns by being able to run at higher leverage without compromising their equity cushion and minimize spread compression. We also see the possibility for higher returns and dividend increases given a number of recent positive macro-level data points suggest that the market now views the probability of a severe adverse outcome in Europe and additional quantitative easing measures in the U.S. as relatively lower. Reiterate Buy (PT $30) for AGNC, and Neutral (PT $16.50) for Annaly Capital (NYSE: NLY). We are evaluating our long-term outlook for Neutral rated CYS Investments (NYSE: CYS) (PT 13.50) given its higher exposure to HARP."
Analyst, Bill Carcache, said, "American Capital (Nasdaq: AGNC) our top pick on superior prepayment risk management; reiterate Buy and $30 PT. Effective prepayment risk management helps the agency mortgage REITs generate higher returns by being able to run at higher leverage without compromising their equity cushion and minimize spread compression. We also see the possibility for higher returns and dividend increases given a number of recent positive macro-level data points suggest that the market now views the probability of a severe adverse outcome in Europe and additional quantitative easing measures in the U.S. as relatively lower. Reiterate Buy (PT $30) for AGNC, and Neutral (PT $16.50) for Annaly Capital (NYSE: NLY). We are evaluating our long-term outlook for Neutral rated CYS Investments (NYSE: CYS) (PT 13.50) given its higher exposure to HARP."
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