|From: weege (Rep: 325) reply to hecilopter||Date: 04/03/2020 15:50|
|Forum: Western Asset Mortgage Capital Corporation - Msg #92||Thread #674140259 (Rec: 0) |
|We've seen this before. I think they will make it and this heads back to 4 at least by the summer. Re: I emailed Larry in their investor relations yesterday with my concerns. I ju...|
| Reply to hecilopter - Msg #89 - 04/03/2020 15:29|
I emailed Larry in their investor relations yesterday with my concerns. I just received this somewhat encouraging reply:
I handle Investor Relations for Western Asset Mortgage Capital Corp. and am responding to your inquiry.
The relentless selling in the space appears to be driven by investors seemingly giving up on the sector and to continued concerns over margin calls and liquidity issues.
It is quite discouraging that we are trading at such a significant discount to our latest book value estimate. Unfortunately, many other mortgage REITs are in the same position, more or less.
There certainly is a very large disconnect between traditional valuation measures and stock prices across the entire space. The residential mortgage REITs are trading at discounts to very recently disclosed (and significantly reduced) book values in the 25% - 65% range, when historically that discount has been in the 0% - 15% range.
Rest assured, the Company is doing everything in its power to preserve liquidity and protect book value and will provide an update to our investors during our first quarter earnings call, or earlier, if that turns out to be the case.
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