Yesterday Merrill Ross at Wunderlich put out a sell opinion, even though she was potentially angering the largest player in her stock sector. You simply don’t see that among equity analysts.
Hold, maybe.
But an outright sell? Never.
Long time MoM readers know that I had doubts about the non-Agency business model Chimera was pursuing. Specifically, by selling off the front end cash flows of the MBS bonds they bought in the marketplace, they were setting themselves up to earn a (non-cash) profit only to the extent that the back end cash flows were worth more each quarter, at least until the front end bonds were paid off.