Anthracite Expects RMBS-Related Loss

Anthracite Capital, New York, has reported that it is expecting a loss per share of $0.40 to $0.52 for the third quarter, which it attributed to the effect of recent interest rate fluctuations on its residential mortgage-backed securities, and to losses associated with downsizing its RMBS portfolio.The commercial mortgage real estate investment trust said it plans to speed up its "strategic reduction in RMBS" to reduce its earnings volatility. "We expect the allocation to RMBS to represent less than 25% of our total portfolio within the next few quarters, and our portfolio going forward is expected to reflect our longstanding intention to be primarily a holder of credit-sensitive commercial real estate assets," said Hugh Frater, Anthracite's president and chief executive officer. The REIT expects to pay out a dividend of $0.28 per share for the third quarter, compared with $0.35 per share for the second quarter. The REIT had reported a loss of $0.26 per share for the second quarter.