Shares of Anworth Mortgage Asset Corp. lost nearly 7 percent of their value Thursday after the company disclosed lower earnings during the second quarter.
In an announcement late Wednesday, the Santa Monica-based mortgage investment trust reported net income for the quarter of $24.4 million, (21 cents per share). During the same quarter last year, the company had net income of $32.6 million, (32 cents).
Anworth invests in securities guaranteed by the U.S. government through Ginnie Mae, Fannie Mae or Freddie Mac. The company makes income from the difference between its borrowing costs and the yield on its $6.15 billion portfolio of mortgage assets.
The company said the average interest rate spread between its costs and yield during the second quarter was 1.8 percent. That compares with a spread of 2.47 percent during the second quarter 2009.
Anworth shares closed Thursday at $6.97, down 49 cents or 6.6 percent for the day.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- EARNINGS: Anworth Mortgage, Wesco Aircraft
- Anworth Reports Profit in Quarter
- Past Fortunes No Guarantee of Future Gains in Mortgage Game
- Anworth Swings to Loss
- Anworth Posts Strong Q1 Earnings
- Anworth Plunges on Downgrade
- Apex Capital Finding Profit From Interest-Rate Climate
- Anworth Beats Q2 Expectations