Arlington Asset Investment Corp. (NYSE:AI)

CAPS Rating: 5 out of 5

An investment banking firm that provides investment banking, institutional brokerage and asset management services and invests as principal in mortgages and mortgage securities and merchant banking investments.


Player Avatar ghrcap (< 20) Submitted: 12/9/2009 9:44:02 AM : Outperform Start Price: $8.02 AI Score: +155.10

AI is no longer a REIT and no longer owns a part of FBCM. It is now an investment company which owns at a substantial discount to par a basket of primarily non-Agency mortgage backed securities. They are not leveraging this portfolio and will simply reinvest the 12% cash yield while they wait for jobs and housing to improve over the next couple of years which will increase the value of their securities. A dividend declaration is possible here.

Member Avatar jsbacker (90.57) Submitted: 12/12/2009 10:21:28 AM
Recs: 1

Agree on all points. You hit the nail right on the head. They've taken all the necessary steps to ensure survival and future profitability.

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