Author Topic: MFA-Buy?  (Read 727 times)

wescobrk

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MFA-Buy?
« on: March 26, 2020, 06:25:57 AM »
Do any board members have any positions in MFA? If so, what are your thoughts?
I'm looking to put in a tiny position.


Fat Pitch

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Re: MFA-Buy?
« Reply #1 on: March 26, 2020, 07:40:35 AM »
I bought the baby bonds via MFO after the margin call was announced. Figured there was enough meat on the bone to be okay, but now I'm out after the recovery.

Most of these non agency mREITs are zeroes. MRA has a lot of non Agency MBS and residential whole loans. There's no way to properly value the residential whole loans and they were pledged to their repo lines. Those lines total 9.5 billion and they couldn't meet the margin call. I think the equity is a zero depending if the repo counter parties show MFA management mercy and bail them out.

Many mREITs had their assets seized by repo counter parties and are being liquidated. TWO bit the bullet and sold out of their tiny non Agency MBS and took a 55% hit to book value... that means someone like MFA with a larger % being non Agency MBS is a zero.
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wescobrk

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Re: MFA-Buy?
« Reply #2 on: March 26, 2020, 07:55:02 AM »
I bought the baby bonds via MFO after the margin call was announced. Figured there was enough meat on the bone to be okay, but now I'm out after the recovery.

Most of these non agency mREITs are zeroes. MRA has a lot of non Agency MBS and residential whole loans. There's no way to properly value the residential whole loans and they were pledged to their repo lines. Those lines total 9.5 billion and they couldn't meet the margin call. I think the equity is a zero depending if the repo counter parties show MFA management mercy and bail them out.

Many mREITs had their assets seized by repo counter parties and are being liquidated. TWO bit the bullet and sold out of their tiny non Agency MBS and took a 55% hit to book value... that means someone like MFA with a larger % being non Agency MBS is a zero.

Thanks for the feedback!