Focus of Article:
The focus of this article is to provide readers fixed-rate agency mortgage-backed security (“MBS”) price movements during the second quarter of 2017 (through 6/16/2017). This includes pricing for both 15- and 30-year fixed-rate agency MBS holdings. This should be seen as an “update” article, similar to the following analysis I provided readers approximately one month ago (focused on two different mREIT companies though):
AGNC Investment And Orchid Island Capital: MBS Pricing For First Half Of Q2 2017
Due to the constant fluctuations of mortgage interest rates/U.S. Treasury yields, a growing number of readers have asked that I periodically provide this specific analysis showing how changes in MBS pricing directly impact the mortgage real estate investment trust (mREIT) sector. I believe providing more timely articles of this nature allows readers the ability to pursue more active investing strategies in times of heightened volatility to either enhance one’s total return or minimize one’s total losses.
In addition, I will also include some general (and at times specific) impacts the recent fixed-rate agency MBS pricing movements had on certain mREIT companies. This will typically focus on (but is not limited to) the following fixed-rate agency mREIT companies: 1) AGNC Investment Corp. (NASDAQ:AGNC); 2) Arlington Asset Investment Corp. (NYSE:AI); 3) ARMOUR Residential REIT Inc. (NYSE:ARR); 4) Cherry Hill Mortgage Investment Corp. (NYSE:CHMI); 5) CYS Investments, Inc. (NYSE:CYS); 6) Annaly Capital Management, Inc. (NYSE:NLY); and 7) Orchid Island Capital Inc. (NYSE:ORC). In addition, the following hybrid mREIT companies had at least a modest portion of each company’s investment portfolio in fixed-rate agency MBS: 1) Dynex Capital Inc. (NYSE:DX); 2) Invesco Mortgage Capital Inc. (NYSE:IVR); 3) MFA Financial, Inc. (NYSE:MFA); 4) AG Mortgage Investment Trust, Inc. (NYSE:MITT); 5) MTGE Investment Corp. (NASDAQ:MTGE); 6) Two Harbors Investment Corp….