Thank Those Feckless, Reckless QE Tactics

I've covered Armour Residential (ARR) and other mortgage real estate investment trusts before, and this week I had a private conversation with Armour's chief financial officer, James Mountain.

Armour has been selling mortgage-backed-security holdings -- something that naturally increases its hedge position. The firm is clearly in the position of "battening down the hatches" with its focused on liquidity. That is clearly pacifying its repurchase-agreement counterparties, because the amount of collateral Armour is required to hold -- the haircut -- has not increased materially, while its net hedge position has....677 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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