Mortgage REIT Journal will be adding coverage of a new agency mREIT beginning today.
Hatteras Financial (HTS) is an externally-managed mortgage REIT formed in 2007 to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities. HTS is externally managed and advised by Atlantic Capital Advisors LLC.
At March 31, 2008, the portfolio consisted of $3 billion in hybrid ARMs financed almost entirely through short-term repo agreements. As of March 31, 2008, the weighted average haircut under HTS' eleven repurchase facilities was approximately 4.52%, leverage was approximately 8.3:1 and the Company's liquidity was approximately 5.81% of its total assets.
Hatteras Financial Corp. completed an initial public offering of 10,000,000 shares of its common stock at a price of $24.00 per share last week. Shares traded up on Friday, opening at $24.14/share and closing at $24.65/share. Shares were up another 2% on Monday, indicating a bright outlook for HTS.
2 comments:
Sounds a lot like LUM, only not shorted to death. But asset wise, very similar and the style of management likewise appears similar. Perhaps this company is an indication of where the surviving companies may end up in a few years time? Do you think LUM as they go LLC may re-release themselves given their holdings are intact, to shed the associated cloud from this crash? I still think LUM is unique and a one of a kind find, strong backing and a plan to return to profitability. its current PPS is a joke, considering its holdings.
Just to clarify -- Hatteras Financial is invested 100% in mortgage-backed securities that have the implicit guarantee of the United States government. Luminent Mortgage Capital was mostly invested in AAA and AA rated private-label RMBS prior to its margin call fall.
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