Prodesse Investment 2Q Net asset Value $7.69 Vs $6.99
11 August 2009 - 9:05AM
Dow Jones News
Prodesse Investment Limited (PRD.LN), announced Tuesday for its
results for the quarter ended June 30, it had an NAV per share of
$7.69 compared with $6.99.
MAIN FACTS:
-Core net income per average share of $0.27
-Dividend per share of $0.27 (2008: $0.23) from net interest
income - equates to an annualised dividend yield of 15.26%3
-Net income per average share of $0.44
-Portfolio remains 100% implied "AAA" mortgage-backed
securities.
-Net Cash: $215,000 (2008: $89,000)
-Although Constant Prepayment Rate rose modestly during the
quarter, prepayment speeds generally are coming in slower than
expectations.
-Moreover, the Mortgage Bankers Association Refinancing Index
fell 77% during the second quarter, portending a decline in CPR in
future quarters.
-The yield curve in the United States became more positively
sloped during the quarter.
-While there will be variability in this going forward, it is
likely that the steep yield curve persists.
-The company believes that its portfolio strategy of owning a
barbell of fixed-rate, adjustable-rate and floating rate assets
will enable Prodesse to continue to provide competitive returns to
our shareholders.
-Even with the current situation in the mortgage sector the
company does not anticipate having difficulty converting its assets
to cash or extending financing term, due to the fact that its
investment securities have an actual or implied "AAA" rating and
principal payment is guaranteed by Freddie Mac (FRE), Fannie Mae
(FNM), or Ginnie Mae.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com