Bigdubs
Sep 25, 2:10 AM
$IVR my calculations pin BV close to 7 to 7.1. A near 10% drop in BV value since Aug 31...
$7.74 starting BV
+ ~
$0.00 to
$0.25 rate-hedge benefit
− ~
$0.65 to
$0.90 mortgage-basis/asset mark
≈
$7.0–
$7.2 BV
The hedge is what is paying the dividend the losses are what’s gonna lower future dividends.
Raise in yields is killing this and most BV losses are permanent.
Why I remain bearish and the discount to BV remains warranted.
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