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To: Elroy who wrote (109034)	7/9/2012 9:46:09 AM
From: KaiserSosze	Read Replies (1) \| Respond to of 118717

I'm guessing this was a very good quarter for AGNC and their book value is easily in the low-mid $30s. We'll find out in a few weeks.

To: Elroy who wrote (109034)	7/9/2012 2:17:37 PM
From: IRWIN JAMES FRANKEL	Respond to of 118717

>> AGNC is on fire! Yield is down to 14% now. I still don't get what's stopping them from doing a secondary, last reported book value was $29. IF it was principally about raising capital above BV then they would do it. I think it is more about being able to deploy the capital and leverage it at returns that are attractive (without unduly increasing the leverage to maintain returns). Note that it is not just AGNC that is not going as regularly to the capital markets - others have slowed or stopped too. Mortgage rates continue trending lower. At some point that has to deter mortgage REITS raising additional capital. JMHO Further, I see no compelling reason why rates should not continue lower. The Fed needs to cut the payment on reserves to 0 like the EU or better yet charge 20bps like Denmark. :-) The Fed is also buying too much of the T's so they likely need to broaden to buying mortgages. ij