Anworth Mortgage rallies as REIT reduces MBS borrowings; may delay dividend
06/04/2020 15:10
** Anworth Mortgage Asset Corportation ANH.N jumps 25% to
$1.04 after co said reduced non-agency MBS borrowings in effort
to bolster liquidity amid market turmoil due to the coronavirus
outbreak
** Co late Fri said lowered non-agency MBS repo loans to
$270 mln at end-Mar following asset sales, down from $428 mln at
end-Dec, and expects to further reduce non-agency borrowings to
~$180 mln urn:newsml:reuters.com:*:nBw6wCk2Ta
** In addition, said agency MBS sales and principal payments
enabled agency MBS borrowings to fall to ~$2.2 bln at end-Mar
** Said expects to announce decision later this month about
its Q1 dividend, which it anticipates to delay
** Estimates book value/sh fell ~40% in Q1 to $2.75
** Co noted Fed's recent actions to support agency MBS
market has lowered unprecedented volatility, adding "Non-Agency
MBS prices have moved significantly lower recently, but have
stabilized over this past week."
** Anworth is one of several mREITs that been buffeted by
wild price swings, and have sold assets to meet margin calls and
reduce leverage given bond market turbulence created by the
COVID-19 pandemic
** mREITs also gaining across the board Mon amid broader
rally in equities with S&P 500 .SPX up nearly 5%
** The Dow Jones U.S. Mortgage REITs index .DJUSMR up ~11%
and the iShares Mortgage Real Estate ETF REM.N up ~13%
(Reporting by Lance Tupper)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))